On June 1, the U.S. Congress enacted the Raechel and Jacqueline Houck Safe Rental Car Act of 2015. While this piece of legislation will ground rental cars for 24 hours after written recall notices are received, there’s still an issue that affects consumer safety: These notices may not arrive or be opened by rental agencies until well after the public has been made aware of the issue. Meanwhile, recalled rental cars are still on the road.
Typically when rental car agencies receive recall notices, they have to go through the process of locating all recalled vehicles, bringing them to their lot, processing car exchanges for the drivers and then sending the affected vehicles off to the dealership for repairs. As the rental car recall process can be long and arduous, the likelihood of consumers still driving recalled rental cars is high.
Before recalls create a tangled mess for both rental car agencies and consumers, there is a simple solution available in over-the-air (OTA) updates. Of the $6.9 billion in yearly U.S. recalls alone, CX3 Marketing’s research shows 6.4 percent, amounting to $436 million, is attributed solely to software issues.
As the amount of software embedded in cars continues to grow, so will the software-related recalls. In CX3 Marketing’s research mentioned above, the shift began of regular recalls switching over to software-based recalls. This is the tipping point for software-based recalls which will continue to be an issue for rental car agencies without OTA update enabled vehicles. OTA updates instantly update cars on a rolling basis keeping cars on the road and rental car agencies at ease.