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Dealer sues competitor for Takata sales

Posted on 31 October, 2016

A US dealer is suing his competitor for selling used vehicles which require their airbags to be replaced as part of the Takata safety recall.  Takata’s faulty airbag inflators have resulted in more than 14 deaths and 150 injuries worldwide, leading to the largest-ever recall in automotive history. CBS News reports it is legal to sell vehicles with open safety recalls in the US, even though customers may be unaware of the cars’ potential dangers. But now one Florida dealership owner is suing his competitor for selling cars with open recalls, in an effort to stop the sales. Toyota dealer Earl Stewart decided to stop selling vehicles subject to the Takata recall in June, after he was asked by CBS News how he would feel if someone was severely killed or injured by an airbag in a car sold by his dealership. “How would I feel? I would feel absolutely terrible,” Stewart said at the time. In order to protect customers and stop more of the sales, he is now suing competitor Arrigo Enterprises under Florida’s Deceptive and Unfair Trade Practices Act. He alleges the dealership is not telling buyers about the recall and is misrepresenting the cars’ recall status. Stewart is also seeking damages for loss of business as part of his lawsuit, but says it’s hard to determine exactly how much business he’s lost because he’s also gained customers by taking a stand on these issues. He expects the lawsuit will make him a pariah among his fellow dealers but is unconcerned. “How can you allow someone to sell a product that can kill or injure you?” The owner of Arrigo Enterprises says he is not violating the law by selling vehicles with open recalls, but he has not reviewed the lawsuit yet and did not give further comment. While the sales are legal, Democratic Senator Richard Blumenthal of Connecticut says they shouldn’t be, and he criticises dealers for deceptive and misleading sales pitches. Blumenthal has proposed legislation to change the rules but faces opposition from dealer groups. The National Automobile Dealers Association says the proposed law would lower consumers’ trade-in values and “would not move us any closer” to getting all recalled cars repaired.