Here’s something to keep in mind next time you drop into a Budget or Enterprise Rent-A-Car – The American Car Rental Association is pushing a two-tier system for vehicle recalls. So the next Ford Focus you rent could have a flaw they’re going to ignore. Well, maybe “ignore” is too strong a word. Let me explain:

This two-tier system would separate the major, life-threatening, accident-causing recalls from simple “probably won’t do anything” issues. If the recall is deemed urgent, cars will be sent for repair. If not, rental accompanied reserve the right to have those vehicles remain on their lots, and let customers pick them up.

The American Car Rental Association represents 94 companies, including all the major operators except Hertz, said Sharon Faulkner, its executive director.

Bob Barton, association president, said the word “recall” covered a wide range of issues. “We can’t determine the significance of a recall and whether a vehicle is no longer safe to operate or whether it can continue to operate and then should simply be brought in for service at some point in time,” he said. “We simply want the manufacturers to instruct us when a vehicle needs to be grounded and we will absolutely comply.”

Asked how recalls are handled now, Barton added: “If we get a notice that says the vehicle needs to be grounded, every company will set their own policy. But as a general rule I would suggest everybody would ground that vehicle.”

“Every company will set their own policy, but ultimately that repair will get done, but maybe not immediately.”

Yeah… this sounds like a great idea.

Read the full story at The New York Times

Car Dealers aren’t the only ones suffering from the downward spiral of automotive companies. Rental car companies are being forced to cut the amount of new cars they order in 2009.

According to Automotive News;  “In 2008, rental companies bought 1.5 million new cars and trucks, down from 1.9 million in 2007, sales are expected to fall even more in 2009 as rental companies shrink their vehicle fleets.” Rental companies aren’t in the running for any government bailouts, so good luck reserving anything but an abused 2008 PR Cruiser.

To put this into perspective – Enterprise Rent-A-Car expects to buy 400,000 new vehicles in the 2009. This is roughly half of the amount from previous years.
Farrell said Enterprise now keeps its rental vehicles in service for an average of 13 months, up from 11 months. Enterprise is also one of GM’s biggest customers, along with Chrysler brand vehicles. Hertz, which orders sports car like the newer Mustang and Dodge Challenger, may have to cut their specialty rentals. It’s a trickle down effect that also hurts used car sales and auctioning. Many rental car companies resell their vehicles to such businesses.