Enterprise Issues Policy Statement
The following statement was provided to the Ojai Valley News on Wednesday, June 23, 2010 in response to the deaths of Raechel and Jacqueline Houck:
Statement
Enterprise Rent-A-Car Reiterates Proceduresfor Automobile Manufacturers’ Recalls “If and when manufacturers recommend that vehicle owners park or ground their vehicles, we promptly do so. However, we also believe there are times when recalled vehicles need to be grounded regardless.”
With more than 30 million vehicle rental transactions every year, Enterprise Rent-A-Car is reiterating its policies and procedures for handling automobile manufacturers’ recalls.
“Our customers’ safety is our top priority,” said Greg Stubblefield, executive vice president and chief strategy officer for Enterprise. “Customers should know that when they come to our rental counter, they can count on our commitment to provide a vehicle that is safe and dependable. That’s been the foundation of our business for more than 50 years.”
Every year, auto manufacturers – together with the National Highway Traffic Safety Administration (NHTSA) – issue hundreds of recalls and service bulletins affecting millions of vehicles in North America, including thousands of our rental cars and trucks, Stubblefield stated. In the vast majority of cases, manufacturers do not suggest grounding, but instead ask owners to contact their local dealers to schedule a service appointment.
“If and when manufacturers recommend that vehicle owners park or ground their vehicles, we promptly do so,” Stubblefield stressed. “However, we also believe there are times when recalled vehicles need to be grounded regardless.”
Over the last decade, Enterprise has taken a number of steps to address manufacturers’ recalls in an appropriate and timely manner. Among them:
- In addition to the evaluation that car manufacturers and NHTSA make in deciding whether to ground a vehicle, Enterprise also independently reviews all recalls. Importantly, recalls involving the risk of sudden loss of control, airbag failures or fire hazards will be grounded until repaired.
- The company also has made investments in information technology to help address auto manufacturer recalls. The ECARS computerized rental management system – which connects the reservations and reporting operations of more than 6,000 Enterprise rental offices – automatically identifies all affected vehicles in real time for employees to view throughout the day.
- Enterprise regional subsidiaries can monitor all notices and bulletins and track compliance –including individual rental transactions – in a timely fashion. In addition, many auto manufacturers have upgraded their systems so that more of their notices and bulletins are delivered electronically to the major rental car companies.
- In 2007, Enterprise added more than 100 service facilities across the country. At these facilities, certified technicians not only provide routine maintenance work, but also supplement local dealers’ efforts to respond quickly to recalls, particularly large-scale ones. The pace of repair work, however, can be subject to the availability of parts.
The issue of how rental car companies handle manufacturers’ recalls has been put in the spotlight following the resolution last week of a lawsuit in Alameda County, Calif. “This was a long, complicated and difficult case for all involved, one that had to work its way through the court system to reach resolution,” Stubblefield said. “But, more significantly, this is a terrible tragedy for the Houck family. Our hearts go out to them, and we are very sorry for their loss.”
In the Houck case, neither Chrysler nor the NHTSA recommended grounding the more than 400,000 PT Cruisers recalled in 2004. (Chrysler, the manufacturer of the PT Cruiser, was a defendant in the Houck lawsuit, but was dismissed due to bankruptcy in 2009.) Instead, owners were asked to contact their local dealers to schedule a service appointment.
“Given all we have learned, today we would ground the recalled PT Cruiser until repaired,” Stubblefield said. “That is why we continue to work with our employees and automobile manufacturers on ways to improve our policies and procedures for handling recalls.
“We share the Houcks’ goal of preventing anything like this happening again,” Stubblefield said. “Of course, nothing can change this heartbreaking situation for the Houck family and, again, we are truly sorry for their terrible loss.”
Enterprise Rent-A-Car Reiterates Proceduresfor Automobile Manufacturers’ Recalls “If and when manufacturers recommend that vehicle owners park or ground their vehicles, we promptly do so. However, we also believe there are times when recalled vehicles need to be grounded regardless.”
What more do you need? Some of the info you have is 5+ years old. GMA and FOX report that it isn’t just enterprise but all of the titans in the rental car world. Hertz, Avis, Dollar, Thrifty… the list goes on. I am sorry to read such a tragic thing but attacking an individual and a company who clearly after your hard work admits fault and wants to get past the problem (preventing more) doesn’t solve much.
If you are going after one go after them all. Every rental car company out there rents the PT Cruiser, among other recalled vehicles.
RESPONSE OF CHUCK AND CALLY HOUCK
TO STATEMENT OF ENTERPRISE RENT-A-CAR
REGARDING RECALL PROCEDURES
Enterprise’s Statement: “Our customers’ safety is our top priority,” says Enterprise Chief
Strategy Officer.
The Houcks’ Response: Thomas Gieseking, Enterprise’s Assistant Vice President of
Service Operations and the person most knowledgeable on its recall policies testified under oath:
“Q. Is there a — a job title at the branch level for someone who is in charge of safety? A. I don’t
know. Q. Is there a job title at the subsidiary level for someone who is in charge of vehicle
safety? A. Not to my knowledge. Q. Is there a job title at the Enterprise parent company level of
someone who is in charge of vehicle safety? A. Vehicle safety, not to my knowledge.”
Thomas Moulton, the Group Vehicle Repair Manager for the Enterprise San Francisco
subsidiary and person most knowledgeable regarding the subsidiaries’ recall policies testified
under oath: “Q. Did you ever consider the possibility that Enterprise should not rent cars to the
public after they’ve received recall notices from the manufacturer? A. No.” and “Q. Do you
think it’s a good idea to rent cars that are subject to a recall for catching fire to the public? A. I
have no idea.”
Enterprise’s Statement: “Enterprise Rent-A-Car is reiterating its policies and procedures
for handling automobile manufacturers’ recalls.”
The Houcks’ Response: Enterprise does not have, and never had, any policy on renting
recalled vehicles – that is why Raechel and Jackie died. Vice President Gieseking confirmed
under oath: “Q. So does the parent company have any policy with respect to ensuring that
recalled vehicles are not rented to the public? A. No.” The Enterprise training manual has
nothing on recall procedures. While Enterprise employees are trained in “learning how to sell …
optional damage waiver, supplemental liability protection, personal accident insurance and
personal effects coverage,” they receive no training in handling recalls.
Enterprise’s Statement: “Importantly, recalls involving the risk of sudden loss of control,
airbag failures or fire hazards will be grounded until repaired.”
The Houcks’ Response: The recall of the PT Cruiser stated that it was a “safety recall” and
that the power steering hose defect “can result in an underhood fire.” Raechel and Jackie burned
to death because of this defect. Group Manager Gieseking testified under oath: “Q. Did
anybody at your company do anything in response to the notice of recall received
September 10th, 2004? A. I have no idea.”
Enterprise’s Statement: “Customers should know that when they come to our rental
counter, they can count on our commitment to provide a vehicle that is safe and dependable.
That’s been the foundation of our business for more than 50 years.”
The Houcks’ Response: The Area Manager for the Enterprise subsidiary which rented
Raechel and Jackie the recalled vehicle, Mark Matias, testified under oath: “Safety recalls are
referred to as priority recalls. When the fleet was short, and there was demand for vehicles, these
recalled vehicles would be rented to the public …. Enterprise, at the corporate level, pressed the
local offices to run a tight operation. Their philosophy was that, ‘You’ve got to keep booking,
because you don’t know when you are going to get a car back.’ But then of course, you run short
on vehicles, and if all you have are recalled vehicles on the lot, you rent them out. It was a
given. The whole company did it.”
Enterprise’s Statement: “[W]e continue to work with our employees and automobile
manufacturers on ways to improve our policies and procedures for handling recalls.”
The Houcks’ Response: Vice President Gieseking confirmed under oath: “Q. And are there
any plans for the future that you’re aware of of changing the way recall notices come up in the
rental system? A. I don’t know.;” and “Q. And as we sit here today, do you know whether
vehicles that are subject to a safety recall at the present time are still being rented to Enterprise
customers? A. I do not know.”
Enterprise’s Statement: “This case … had to work its way through the court system to
reach resolution.”
The Houcks’ Response: No, it did not. Enterprise tried to crush us, muzzle us and make us
give up. For 5½ years Enterprise claimed that it acted reasonably in renting the recalled vehicle
and they hired a fleet of so-called “expert witnesses” to conduct dozens of “tests” and
“experiments” to prove that Raechel and Jackie died, not because of the safety recall for
underhood fires and notwithstanding an eyewitness’ testimony that he saw smoke and fire
coming from the PT Cruiser, but because Raechel’s bad driving killed herself and her younger
sister. Then, a month before trial and after 5½ years of contentious, extensive and wildly
expensive litigation, Enterprise brought in new counsel, admitted liability, withdrew all of their
defenses and successfully moved to keep the jury from knowing anything about their 5½ year
campaign against us. We want the truth to be known.
Enterprise’s Statement: “Our hearts go out to [the Houcks], and we are very sorry for their
loss.”
The Houcks’ Response: They killed our daughters on October 7, 2004. This is the first time
we heard them say this. All we ask now is that Enterprise stop renting recalled vehicles so this
nightmare is not suffered by any other parents.
Stop fighting us and fix your company.
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