AutoNation Won’t Sell Recalled Cars

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The nation’s largest automotive dealer network has announced it will no longer sell either new or used vehicles subject to a recall until they have been repaired.

The announcement by Ft. Lauderdale-based AutoNation comes as the number of safety-related recalls has been surging to record levels. But while the U.S. Senate recently passed a measure that would force rental companies to pull recalled vehicles out of their fleets pending repairs, dealers were not required to take similar actions before selling such vehicles. The House has yet to take action on its own version of the bill.

The move comes as both automotive regulators and auto manufacturers take more aggressive action on safety problems in the wake of several high-profile defects. That includes a faulty ignition switch at General Motors linked to 124 deaths, as well as the ongoing recall of millions of vehicles using potentially defective Takata airbags.

All told about 64 million vehicles were recalled in 2014, about twice the previous record, and the pace hasn’t slowed this year. Studies by both the National Highway Traffic Safety Administration and the vehicle tracking firm CarFax suggest there are perhaps 30 million or more vehicles on the road yet to have recall repairs completed.

AutoNation’s announcements comes as "a historic commitment to safety," said Rosemary Shahan, President of the advocacy group, Consumers for Auto Reliability and Safety. CARS has been a major force behind the Raechel and Jacqueline Houck Safe Rental Car Act that passed the Senate in July.

Named for two sisters killed in 2004 when an unrepaired defect caused their rental car to spin out of control, the measure was included in the Senate version of a six-year federal transportation bill. It notably excluded dealers from having to make repairs before selling a recalled vehicle, focusing only on rentals. The House is expected to examine the bill now that lawmakers have returned to Washington.

But CARS President Shahan says the "huge breakthrough" of having AutoNation voluntarily stop sales until recalled vehicles are repaired could put pressure on the rest of the industry. The Florida company operates 293 automotive retail outlets across the country, and is the largest of the many chains that have begun dominating the U.S. retail automotive market. 

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