Safety group wants probe of Enterprise rental car repairs

SANTA CRUZ, Calif. – A consumer lobbying group founded by Ralph Nader has asked the Federal Trade Commission to look into the recall repair policy at Enterprise Rent-A-Car.

The complaint by Clarence Ditlow, executive director of the Center for Auto Safety, cited the recent $15 million jury award in a wrongful death lawsuit involving a recalled 2004 Chrysler PT Cruiser at Enterprise in Capitola, Calif., in which two young women from Santa Cruz died.

Raechel Houck, 24, and her sister Jacqueline, 20, died when the PT Cruiser rented from Enterprise in Capitola burst into flames on Oct. 7, 2004, after hitting a big-rig head-on. They were headed back to Santa Cruz from their father’s home in Southern California. The car had been subject to a recall to check for power steering fluid leaks that could cause a fire, but it was not repaired.

The Center for Auto Safety filed a complaint against Budget Rent-A-Car in 1988, contending the company failed to disclose to prospective renters that it did not inspect and repair automobiles subject to recall notices.

The complaint was settled in 1991 by the FTC with a consent agreement. Budget agreed to inspect and repair the vehicles within 120 days after receiving a recall notice or disclose to prospective renters that vehicles are subject to safety recall notices and may contain defects.

The Center for Auto Safety successfully lobbied for recall of the Ford Pinto due to a dangerous gas tank design, the Firestone tire recall and “lemon laws” in all 50 states.

Greg Stubblefield, Enterprise executive vice president and chief strategy officer, said Tuesday, “Given all we have learned, today we would ground the recalled PT Cruiser until repaired.”

He also said the company is working on ways to improve policies and procedures for handling recalls.

Enterprise added more than 100 service facilities in 2007 to respond to recalls, though the company noted the pace of repairs can be subject to the availability of parts.