Dealer chain hit for its sales of recalled cars
A consumer watchdog group has criticized AutoNation, one of the largest car dealerships in the country, for selling used vehicles with known safety risks.
A report issued by the California Public Interest Research Group, or CalPIRG, surveyed 2,400 vehicles for sale at 28 randomly selected AutoNation dealerships in the country. It found that 1 in 9 of those cars had unrepaired safety recalls. Among the most egregious dealerships was AutoNation Honda Fremont, the group said.
AutoNation disputed the report’s findings. Marc Cannon, a company spokesman, said the report is full of inaccuracies based on “selectively chosen” information.
“The overwhelming majority of the vehicles we sell at the time of sale do not have a recall,” Cannon said, adding that the real number is “well less.”
The survey was conducted during July and August by CalPIRG and Consumers for Auto
Vehicles had a variety of safety risks, many with parts that could increase chances of crash or injury.
Reliability and Safety, another advocacy nonprofit. The groups focused on AutoNation because of its size, said Claudia Deeg, a CalPIRG spokeswoman. She said sale of recalled vehicles is an industrywide issue.
Two Bay Area dealerships, AutoNation Honda Fremont and AutoNation Toyota Hayward, were included in the survey. The report found that 1 in 6 vehicles at the Fremont dealership had a safety recall, making it “one of the worst,” Deeg said.
The recalled vehicles had a variety of safety risks, many with parts that could increase chances of crash or injury. Vehicles at the Hayward dealership had issues with headlights, brake lights and air bags. One commonly recalled part, the Takata air bag, is known to send sharp metal fragments shooting out of a driverside air bag.
AutoNation said it fully complies with laws and regulations of the U.S. Department of Transportation and the National Highway Traffic Safety Administration. The dealership repairs recalled vehicles if possible, but if no part is available, they sell it with full disclosure, Cannon said.
Buyers of used cars must sign a form acknowledging that the dealer provided documentation of any open recalls and gave the purchaser the opportunity to schedule a repair prior to purchase, according to AutoNation.
“The suggestion, therefore, that AutoNation is knowingly or deliberately seeking to mislead consumers is entirely unfounded,” the company said.
CalPIRG’s Deeg, however, said of the disclosure that “we can’t guarantee that it always happens” and consumers also may be distracted during purchase. “Regardless of any disclosure, these vehicles should not be for sale,” Deeg said.
A 2015 AutoNation safety policy barred sale of unrepaired cars subject to recalls. However, in 2016, the chain changed its policy and returned to selling unrepaired cars.
CalPIRG called on AutoNation to reinstate its prior policy. It seeks a state investigation and asks the Federal Trade Commission to prohibit the dealer from “deceptive and unfair practices.”
“If you couldn’t sell a toy that’s going to poison your kid, then it shouldn’t be allowed for any dealerships to sell a car that could kill their passengers on their way home from the sale lot,” Deeg said.