Boxer, Schumer Announce GM Endorsement of Legislation to Ban Rental Car Companies from Renting or Selling Recalled Vehicles

Press Release

Date: July 16, 2014
Location: Washington, DC

U.S. Senators Barbara Boxer (D-CA) and Charles E. Schumer (D-NY) today announced that General Motors is the first major car manufacturer to support the Raechel and Jacqueline Houck Safe Rental Car Act -- legislation that would prohibit rental car companies from renting or selling vehicles under manufacturer recall. The bipartisan legislation, which already has the support of all the major rental car companies, the American Car Rental Association, Consumers for Auto Reliability and Safety, and a broad coalition of auto safety and consumer groups, was first introduced in 2013 by Senators Boxer, Schumer, Claire McCaskill (D-MO) and Lisa Murkowski (R-AK). The bill is named after Raechel and Jacqueline Houck, two sisters from Santa Cruz who were killed driving a rental car that had been recalled for a power steering hose defect but had not been repaired.

General Motors announced their support for the legislation in a letter to Senator Schumer, which came after bill sponsors negotiated new legislative language to make clear the authors' original intent not to change the status quo or interfere with contractual obligations between the auto manufacturers and rental companies regarding loss of use liability.

"General Motors' endorsement is an important step in our campaign to pass the Raechel and Jacqueline Houck Safe Rental Car Act and keep unsafe rented vehicles off the roads," Senator Boxer said. "Today I am calling on all the other automakers who currently oppose this common-sense bill to join GM in supporting this effort to protect American families."

"The safety of anyone who drives or rides in a GM vehicle is extremely important to us," said GM CEO Mary Barra. "We have worked constructively with Senator Schumer, and the cosponsors of The Raechel and Jacqueline Houck Safe Rental Car Act. Through those conversations we have addressed our concerns, and with changes agreed to by the sponsors, GM is able to support their legislation. 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."

"I welcome GM's support for Senator Schumer's bill, named after my treasured daughters and co-sponsored by my Senator Barbara Boxer," said Carol "Cally" Houck, mother of Raechel and Jacqueline Houck. "It's time for the rest of the auto manufacturers and the auto dealers to follow the rental car industry, and GM, and support the bill."

"When buying or renting a car, the last thing we should worry about is if the car is defective or recalled," said Senator Schumer. "I thank General Motors for endorsing our common sense legislation and hope it opens the door for more car manufacturers to do the right thing and support our bill to keep consumers safe."


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