The National Independent Automobile Dealers Association announced earlier this week that Shaun Petersen, the regulatory counsel for the NIADA, spoke to a New York City Council committee on Oct. 28 regarding the city’s proposed law that would make it illegal to sell a used vehicle with an open recall. The law would further require used-car dealers to fix recalls on not only cars in their inventory, but also on vehicles they had already sold that were not repaired.

In front of the council’s Committee on Consumer Affairs in New York, Petersen spoke on behalf of the association and recommended that the proposed law be further studied regarding its ramifications to both consumers and businesses before any action is taken.

Petersen, a partner of Mac Murray, Petersen & Shuster LLP, an Ohio law firm, as well as a former Ohio deputy attorney general, elevated several issues with the proposed law before the council, including the following provided by the NIADA:

• Independent dealers have no control over the recall process and are not allowed to make recall repairs. Federal law requires manufacturers to repair recalled vehicles at no charge to the owner, and the manufacturers only allow their franchised dealer network – which does not include independent dealers – to make the repairs. In fact, when it comes to the recall process, independent dealers are in the same position as consumers. Like any other vehicle owner, they must be notified of a recall by the manufacturer and must have it repaired by a franchised dealer.
   
• Not all recalls are safety recalls. Vehicles have been recalled for a misprint in the owner's manual or flaking paint. There is no reason to prevent the sale of a vehicle because of recalls that have no impact on the vehicle's safety or operation.
   
• Many recalled vehicles do not have a fix readily available. It often takes a significant amount of time for manufacturers to determine the appropriate fix, and even longer to provide the technical specifications and parts for the vehicle to be repaired. Some recalls cannot be repaired for months. In some instances it has taken more than a year for a fix to become available. And often, manufacturers and NHTSA will publicly state that grounding a vehicle pending a repair is not necessary. That occurred recently with the GM recall over faulty ignition switches, which affected millions of vehicles.

For these reasons, among others, the NIADA said it does not support the proposed legislation in NYC. However, the NIADA does maintain its stance on recalls and encourages all independent dealers to take the necessary steps to identify recalled vehicles within their inventory and have them repaired prior to becoming available for sale.