AutoNation won’t sell any cars with open recalls, used or new, at its dealerships, according to Automotive News.
AutoNation CEO Mike Jackson said the costly policy would mean that roughly 5 percent to 10 percent of cars on its lots would be unsellable at any one time. The change in policy for AutoNation comes while different bills work their way through Congress that could prohibit used car dealers to sell cars without recall repair work.
“The recall situation for the U.S. auto industry is a black eye. It is a dysfunctional nightmare that the industry should be ashamed of, and customers are right to be angry and confused,” Jackson told Automotive News. “As part of the industry, we have to hold a mirror up and say, ‘What can we do better as a company?'”
It’s unclear how or who would repair the used vehicles. Presumably the recall work would need to be done at manufacturer service locations, but it’s not clear how AutoNation would work with manufacturers to clear the recall work.
Under current regulations, new cars can’t be sold with open recalls, but used cars can be sold while subject to a recall. Dealership giant CarMax says it tells used car buyers if their new car has an open recall, but doesn’t do the repair work itself.
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