Automotive Fleet
MenuMENU
SearchSEARCH

The Challenge to Comply

Before the enactment of the Safe Rental Car Act, our industry needs guidance on the ambiguous areas of the law, and NHTSA needs to enact common sense fixes to allow our industry to fully comply and protect the public.

by Michael DeLorenzo
March 15, 2016
The Challenge to Comply

Michael DeLorenzo

4 min to read


The Safe Rental Car Act has passed, and now it’s time for all of us in the industry to take on the challenge of compliance with the law. I am taking steps within my organization to ensure that our franchised and corporate-owned and operated locations are in full compliance. However, I have opposed this legislation from the outset because it is based on a recall system that is, to put it simply, broken.

I am very concerned about the implications of this bill on the health and welfare of both the public and the car rental companies attempting to comply with the law. This recent real-world example demonstrates how the recall system is broken:

Ad Loading...

In November 2015, my rental company was mailed 137 recall notices from Nissan about a Nissan Versa safety defect. Of the 137 notices received, I owned only 14 of the cars. That’s right, 90% of the recall notices were for Versas my company no longer owns — in many cases for years. While the 90% error rate is an extreme example, over the last two years our error rates have averaged 70% to 80%.

Since the beginning of 2014, recalls have been issued at a record pace. Conservative estimates are that one in every five vehicles registered in the U.S. is driven with open recalls.

The high error rate in the notification process begs the question: How many of these drivers are even aware of the recalls on their vehicles and the danger they pose to themselves, their passengers, and fellow motorists?

In our digital world, where complex data can be managed with amazing efficiency, we need the National Highway Traffic Safety Administration (NHTSA) to streamline notifications and create a more reliable process. Fleet owners should be notified as soon as a recall is issued. With so much on the line for public safety and our industry, a 10% to 30% notification success rate is a failure for the manufacturers and NHTSA, and by any reasonable measure simply unacceptable.

In another example of how the system is broken, in April 2015, Ford announced a recall involving a spring in the door latch mechanism on certain Fusion and Fiesta models. We immediately grounded 45 cars in our fleet covered by the recall. The recall notice said that there was no known repair and no repair parts available.

In October, after six months of grounding, our Ford dealer was authorized to start repairing the defect. Ford told the dealer to inspect the cars to see if the spring was broken. If it was broken, they were authorized to replace it. If it wasn’t broken, we would be notified to bring the cars back when more parts were available. The limited supply of parts was being reserved for cars with broken springs. It would have made more sense to announce an inspection in April instead of grounding the cars for six months just to determine the springs weren’t broken.

My company incurred about $153,000 in direct vehicle expenses and about $360,000 in lost revenue before we were able to complete the repair of all 45 cars in late December 2015.

Ad Loading...

I have been renting cars to the public since 1969. I do not ever remember having so many recalls with no known repair time and no parts available. It should not take eight months to resolve a recall on 45 cars with a potential door latch problem.

The situation I just described is just not reasonable and quite frankly not sustainable for the many small operators in our industry, including many of my own franchise owners. The loss of use of 45 cars to a 100-car operator for eight months would likely put that operator out of business.

I urge NHTSA to send representatives to the International Car Rental Show in Las Vegas in April. Our industry needs guidance on the ambiguous areas of the law, and NHTSA needs to hear directly from our industry about the problems in the current recall system and the need for common sense fixes to allow our industry to fully comply and protect the public.

About The Author

Michael DeLorenzo serves as the executive vice president of International Franchise Systems, which owns the NextCar, Priceless, and Rent-A-Wreck brands.

DeLorenzo will speak at the 2016 International Car Rental Show. He will be a panel speaker for the seminar, “The Recall Bill is Law — What Now?”

Originally posted on Auto Rental News

Subscribe to Our Newsletter

More Global Fleet

SponsoredMarch 1, 2026

One University Cut Motor Pool Costs by $45K. Here's the Playbook.

Still managing your motor pool with spreadsheets and manual approvals? Loyola University replaced outdated processes with automated fleet management, eliminating overtime and saving up to $50,000 annually. See how they did it.

Read More →
A world graphic of workers holding hands surrounds a globe with a line of cars on top, representing Global Fleets.
Global Fleetby News/Media ReleaseOctober 30, 2025

Enterprise Fleet Management Surpasses 900,000 Vehicles in U.S. & Canada

Enterprise Mobility connects with mobility solutions around the globe

Read More →
Two people pose with a sign symbolizing Viaduct's partnership with SRI.
Global Fleetby Chris BrownSeptember 8, 2025

Sumitomo Rubber Industries to Acquire Viaduct

Viaduct will join Sumitomo as an independent subsidiary. Partnership strengthens global reach and accelerates AI-driven innovation for fleets and manufacturing.

Read More →
Ad Loading...
A presenter speaks on stage at a conference, addressing an audience seated at round tables, with large screens displaying presentation slides in the background.
Global FleetAugust 11, 2025

AfMA’s 2025 Education & Leadership Summit: 26 Years of Impactful Connection

Held in Sydney, the Australasian Fleet Management Association’s 2025 Summit marked ten years of growth as the event expanded its global reach and doubled down on practical, non-commercial fleet leadership programming.

Read More →
Graphic of awards announcement
Global Fleetby StaffJune 6, 2025

Closing Soon! Nominate a 2025 Global Fleet Team of the Year

Submit your nomination for the award that honors outstanding multinational fleet teams. Nominations close Aug. 15.

Read More →
A graphic with cars driving past in the background with motion blur. Text reads "Reducing Preventable Accidents".
Global FleetNovember 26, 2024

Seven Strategies to Reduce Preventable Accidents

“Accidents” suggest inevitability, but most crashes are preventable — caused by driver actions and behaviors. Here’s why shifting the narrative can improve road safety.

Read More →
Ad Loading...
Four people sitting on stage doing presentation.
Global Fleetby Chris BrownNovember 6, 2024

2024 Global Fleet Conference in Photos

Check out photos from the first two days of the 2024 Global Fleet Conference, which convened for the first time in San Diego Nov. 4-6 as part of the new Fleet Week series of conferences.

Read More →
A black and blue graphic with a business portrait of Colin Sutherland, with text detailing his interview with Chris Brown.
Global Fleetby StaffOctober 17, 2024

Inside the 2024 Global Fleet Conference: Insights from Bobit CEO Colin Sutherland

With GFC joining Fleet Forward and Fleet Safety Conferences, attendees can engage in essential discussions on procurement, ESG goals, and safety.

Read More →
A sky blue and lime green graphic detailing the Global Fleet Conference seminar "Strategies to Reduce Fleet C02 Emissions on a Journey to Achieve Net-Zero."
Global Fleetby StaffOctober 11, 2024

Global Fleet Conference: Achieving Net-Zero Goals

On Nov. 5 in San Diego, join industry leaders from Schindler Elevator and Geotab as they share ideas and approaches to reaching emissions goals in global fleet operations.

Read More →
Ad Loading...
A blue and gold graphic detailing open nominations for the 2024 Global Fleet Manager of the Year.
Global Fleetby StaffJuly 23, 2024

Call for Nominations: 2024 Global Fleet Manager of the Year

Nominate a fleet manager or team today and recognize some of the best and brightest in the global fleet industry.

Read More →