A Tuesday meeting of the senate, automobile manufacturers, and auto dealers resulted in a negotiation stalemate with the proposed new rental recall legislation that would prohibit automobile rental companies from renting or selling vehicles that have recalls on them.

The Alliance of Automobile Manufacturers say, “Grounding defective vehicles is warranted and appropriate for recalls that direct owners to stop driving cars, but grounding all vehicles regardless of the nature of the recall triggers potential negative impacts. Car rental companies will, and have, demanded that they have first access to parts and service, forcing ordinary consumers to wait to get their recall fixed.” Dealers also fear the law would force large rental companies to compete with new car dealerships to secure parts, and will increase costs by giving the rental companies the chance to seek “loss of use” damages from the manufacturers.

According to National Highway Traffic Safety Administration (NHTSA) Administrator David Strickland, “There is one standard for safety that the NHTSA follows and enforces, we deal with unreasonable risk to safety. You can’t say that these risks are small or large — they are all potentially dangerous should be addressed equally.”

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