The Canadian Press - ONLINE EDITION

GM becomes first automaker to support legislation banning rentals, sales of cars under recall

  • Print

WASHINGTON - General Motors Co. is the first big automaker to support legislation barring rental-car companies from renting or selling vehicles subject to a recall.

GM's support was announced Wednesday by bill author Sen. Charles Schumer, D-N.Y. GM endorsed the bill after language was inserted clarifying that automakers that automakers couldn't be charged by rental-car companies for lost use if rentals were grounded while they were being repaired, Schumer said in a news release.

Detroit-based GM sent Schumer a letter within the past week expressing its support. Schumer's announcement came a day before GM CEO Mary Barra and the company's general counsel appear before a Senate subcommittee investigating GM's decade-delayed recall of millions of small cars for flawed ignition switches. The problem has been blamed for at least 13 deaths.

Under the bipartisan legislation, defects in cars under recall would have to be repaired before being rented or sold. It is supported by major rental car companies and several consumer groups.

The legislation is named for Raechel and Jacqueline Houck, two young sisters from California who died in a fiery crash in 2004. They were driving a rental car that had been recalled for a hose defect in the power steering, where a leak could cause a fire in the engine compartment.

While current law prohibits car dealerships from selling recalled vehicles to consumers, no law bans rental-car companies from renting or selling them to unsuspecting consumers — a loophole that must be closed, senators say.

In a statement quoted in Schumer's release, Barra said GM's discussions on the bill with Schumer and the other sponsors resulted in changes that addressed the company's concerns. As a result, "GM is able to support their legislation," Barra said. "If enacted, it will give those who rent a vehicle, regardless of make or model, the peace of mind that the car they are in is safe."

Schumer said he hoped that GM's support would open the door "for more car manufacturers to do the right thing" and endorse the bill.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

How Winnipeg's slow growth saved the Exchange District

View more like this

Photo Store Gallery

  • Bright sunflowers lift their heads toward the south east skies in a  large sunflower field on Hwy 206 and #1 Thursday Standup photo. July 31,  2012 (Ruth Bonneville/Winnipeg Free Press)
  • Two baby tigers were unveiled at the Assiniboine Park Zoo this morning, October 3rd, 2011. (TREVOR HAGAN/WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you support Canada's involvement in the fight against Islamic State?

View Results

View Related Story

Ads by Google