Consumers for Auto Reliability and Safety. Rosemary Shahan, President Sacramento, California

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1 Consumers for Auto Reliability and Safety Rosemary Shahan, President Sacramento, California

2 Raechel & Jacqueline Houck

3 Recalled PT Cruiser that killed Raechel and Jacqueline Houck

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6 The Raechel and Jacqueline Houck Rental Car Safety Act, S. 921 Passed Unanimously out of U.S. Senate Commerce Committee Sponsors: U.S. Senators Schumer, Boxer, Blumenthal, Casey, Feinstein, Gillibrand, McCaskill, Murkowski, Schatz Supporters: Cally Houck, Mother of Raechel and Jacqueline Houck Consumers for Auto Reliability and Safety Advocates for Highway and Auto Safety Consumers Union Consumer Federation of America U.S. Public Interest Research Group Consumer Action State Farm Insurance Company American Automobile Association Enterprise Hertz Avis Budget Dollar-Thrifty Many small rental car companies American Rental Car Association General Motors Opponents: Alliance of Auto Manufacturers Chrysler, Ford, Toyota, Nissan, BMW, Mazda, Mercedes-Benz, Mitsubishi, Jaguar, Porsche, Volkswagen, Volvo National Automobile Dealers Association

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9 Passed the CarMax 125-point inspection

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11 Who is working to get the safety recall bill, SB 686, made into law? Recent statewide polling in California found that a whopping 88% of likely 2014 voters support enactment of this law. Consumers for Auto Reliability and Safety (official sponsors, taking the lead in working with Sen. Jackson for enactment) Advocates for Highway and Auto Safety California Public Interest Research Group California Nurses Association Center for Public Interest Law Children's Advocacy Institute Consumer Action Consumer Attorneys of California Consumers Union Consumer Federation of America Consumer Federation of California Consumer Watchdog Courage Campaign Enterprise Holdings Firefighters Burn Institute Hertz Corporation Latino Business Association National Consumers League SAFE KIDS CA SafetyBeltSafeUSA State Farm Insurance Co. Trauma Foundation International Association of Machinists and Aerospace Workers Retired New Car Dealer Salvatore Cerrito, who owned many franchised new car dealerships in California

12 According to the International Association of Machinists and Aerospace Workers, passage of SB 686 would create at least 1,000 new goodpaying jobs in California, for skilled automotive technicians who perform safety recall repairs. "The biggest need..is for professional mechanics who can diagnose and fix cars that get more sophisticated with every model year...autonation, Inc. has accelerated plans to hire about 400 service technicians at its 270 U.S. stores because of the recalls...labor shortages are adding to the strain on [AutoNation's] service department." -- "Mass GM Recalls Put Strain on Dealers," Wall Street Journal, August 23-24, 2014

13 New York Times June 24, Consumer Groups Ask F.T.C. to Investigate CarMax Over Unfixed Recalled Cars Los Angeles Times June 24, 2014 Petition seeks to block CarMax sales of unrepaired recalled cars CarMax: Largest retailer of used cars in the U.S. Took in over $10 billion last year, and is publicly traded on Wall Street Advertises that all of its cars must pass a rigorous 125+-point inspection Advertises that all of its cars must be CarMax Quality Certified Sells recalled used cars without having the safety recall repairs performed first

14 New York City Consumer Affairs NEWS July 30, 2014 NEW YORK CITY S DEPARTMENT OF CONSUMER AFFAIRS LAUNCHES INVESTIGATION INTO THE SALE OF UNREPAIRED RECALLED USED CARS, AGGRESSIVELY PROTECTING NEW YORKERS FROM POTENTIALLY FATAL DEFECTS Subpoenas Sent to 200 Used Car Dealerships, a Quarter of all Dealers Citywide, in Effort to Discover Whether Dealers are Selling Unrepaired Recalled Cars. Dealers will be Required to Notify Customers of any Recalled Cars Unrepaired at Time of Sale, to Make Repairs and Future Sales of Unrepaired Recalled Cars will be Prohibited. More cars have been recalled in 2014 than any other year on record, said DCA Commissioner Julie Menin. We re not going to wait for tragic statistics to demand that dealers repair these ticking time bombs. Dealerships who have sold unrepaired recalled cars must take responsibility and notify their consumers immediately to repair the vehicles consumers shouldn t have to wait for new legislation, a court battle, or a tragedy, to know the car they bought is safe as required by law.

15 Department of Justice Office of Public Affairs NEWS Wednesday, March 19, 2014 Justice Department Announces Criminal Charge Against Toyota Motor Corporation and Deferred Prosecution Agreement with $1.2 Billion Financial Penalty Toyota Motor Corporation Admits to Misleading Consumers and U.S. Regulator About Safety Issues Related to Unintended Acceleration in Its Cars Independent Monitor to Be Appointed to Oversee Toyota s Public Statements and Reporting of Safety Issues

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17 News headline (projected) November 9, 2016 California Auto Safety Initiative Passes 75% - 25% Analysis: Millions spent by auto dealers to oppose measure only added to public awareness that dealers have been selling unsafe, recalled used cars to California motorists.