WASHINGTON, D.C. -

The National Automobile Dealers Association reiterated its disagreement this week following voice-vote approval by the U.S. Senate Commerce Committee of S.921, the Raechel and Jacqueline Houck Safe Rental Car Act of 2013.

NADA said that the bill would regulate businesses with fleets of five or more rental vehicles (including dealerships that provide loaner vehicles) and subject these cars and trucks under any open recall to be grounded within 24 to 48 hours.

NADA along with the National Association of Minority Automobile Dealers and the American International Automobile Dealers Association argued in a letter to the committee that all recalls do not require the grounding of a rental vehicle.

The groups stressed that the bill is overly broad and gives large rental car companies a competitive advantage over smaller ones.

“Dealers do not want unsafe, recalled vehicles on the road,” NADA president Peter Welch said. “But the legislation fails to recognize the difference between major and minor recalls. Some recalls require immediate action, but others may be as minor as missing or incorrect information in an owner’s manual.”

Other examples NADA mentioned include:

— Clarification of the description of the air bag system in the owner’s manual
— A seat belt chime not sounding if the driver buckled his seat belt before starting the vehicle
— Incorrect date of manufacture on the Federal Certification Label
— Improper airbag caution label adhesion on the driver’s sun visor
— Inaccurate spare tire size and cold inflation pressure information on the placard.

NADA indicated all of these examples could potentially ground vehicles under S.921.

Welch noted that the large multinational rental companies supporting the bill have fleets of hundreds of thousands of vehicles and can easily comply with the bill because grounded vehicles can be replaced with other models.

Welch said that small dealerships with just a few loaner vehicles for their service customers do not have this option.

Prior to the vote, Jay Rockefeller (D-W.V.), chairman of the Senate Commerce Committee, and ranking member John Thune (R-S.D.) said that “more work needs to be done” on the bill before the Senate takes further action.

Sen. Barbara Boxer (D-Calif.), a sponsor of the bill, said she wants to “work on perfecting amendments going forward.”

The letter sent by the associations can be downloaded here.

Former Dealer Inspires Family to Support Community through NADA Foundation

In other association news, this time from Richmond, Va., former franchised dealer Richard Strauss says being involved with the Ambassadors program of the National Automobile Dealers Charitable Foundation teaches his family a valuable lesson about the importance of supporting community organizations that can be passed down to future generations.

“Having members of my family associated with the Ambassadors program allows them to experience the great feeling of pride that comes from making a meaningful contribution in our community,” said Strauss, who plans to name his grandson, Christian Strauss, an Ambassador this year.

To become an Ambassador, a dealer, company, association or individual makes a tax-deductible contribution of $10,000 in their name or in recognition of someone living or deceased. Ambassadors are then eligible to provide $1,500 grants to organizations of their choice every three years in perpetuity.

Strauss, who served as NADA president in 1992, became an Ambassador in 1999. Other Ambassadors in the family include his wife, Lucille Strauss; son, D. Scott Strauss; and daughter, Lisa Strauss. (The title of president changed to chairman in 1998.)

Since 2002, the Strauss family has provided grants from the NADA Foundation to local organizations, which include Meals On Wheels of Greater Richmond, International Hospital for Children, Central Virginia Food Bank, Bright Beginnings YMCA of Greater Richmond, Greater Richmond American Red Cross Chapter and the Boys & Girls Clubs of Metro Richmond.

“This program is a win-win situation,” said Strauss, who is also an NADA Foundation trustee. “Your reputation for contributing to the community is enhanced and NADA’s charitable endeavors demonstrate that dealers are caring and charitable people.”

Donors with three or more gifts of $10,000 to the program are designated Ambassadors of Distinction and can present $2,000 grants every year in perpetuity.

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