AutoNation grounds vehicles under recall

9/6/15

AutoNation Inc. will no longer sell any vehicle, used or new, with an open safety recall.

The new policy will be costly, AutoNation CEO Mike Jackson says, but it’s the right thing to do for customers. Jackson declined to estimate the expense but noted that 5 to 10 percent of AutoNation’s inventory would be deemed unsellable at any given time under the new policy.

“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 said. “As part of the industry, we have to hold a mirror up and say, ‘What can we do better as a company?'”

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