Phoenix Dealership Fined for Not Fixing Recalled Vehicles Before Sale

After an investigation by the National Highway Traffic Safety Administration, an Arizona dealership promised it won’t sell recalled vehicles sans repair.

Sands Chevrolet LLC of Phoenix agreed to pay a $40,000 civil penalty and will shore up its sales procedure in the wake of the probe. The dealer will now check all vehicles for outstanding recalls before delivery and whenever a vehicle is brought in for repair.

Sands’ troubles began in May 2014, after a report delivered to the NHTSA revealed the dealership sold and delivered vehicles that were subject to safety recalls, minus the required repairs. Suspecting the dealer was in violation of the National Traffic and Motor Vehicle Safety Act, the agency opened an investigation.

Those vehicles, the 2012-2013 Buick Lacrosse and Regal and the 2013 Chevrolet Malibu Eco, were equipped with the eAssist hybrid system. General Motors recalled 40,000 units for a fault in the system’s control module, which caused the hybrid’s battery to slowly drain. This led to stalls and the potential for trunk fires.

Dealerships are notified of all safety recalls by the manufacturer, meaning Sands didn’t perform due diligence.

“NHTSA’s investigation indicated that Sands Chevrolet did sell and deliver recalled vehicles that did not have the recall remedy completed at the time the vehicles were delivered to the customers,” the agency stated. “NHTSA therefore concluded that Sands Chevrolet was liable for civil penalties for violations of the Safety Act.”

The investigation ended on May 22. Sands admitted fault, and said the last unrepaired vehicle left its lot in June 2015. Besides checking new and pre-owned vehicles, the dealership will also look for outstanding recalls on all trade-ins.

[Source: Law360]