damaged when delivered?

www.CarBuyersBeware.com
D A M A G E D
WHEN DELIVERED?
How the Bailed-Out
Auto Giants are Ripping Off
American Consumers
“ For years, we have been happy with the quality of
vehicles delivered by professional carhaul drivers. We are
”
opposed to changes that would jeopardize that.
–CHRIS HURD
CEO, Hurd Auto Mall, Johnston, Rhode Island
Statement of Consumer Action and Consumers for Auto Reliability and Safety (CARS)
For release November 5, 2009
Washington, D.C.
For decades, Consumer Action and CARS have worked to improve protections for new and
used car buyers from vehicles with undisclosed prior damage. One of the most insidious problems
American car buyers face is undisclosed damage to new vehicles, which may occur while they are
being transported to dealership lots. While car buyers are accustomed to inquiring about damage to
used vehicles, and obtaining vehicle history reports, they are usually unaware they also need to be on
their guard for hidden damage to new vehicles.
Exacerbating the problem: Under heavy lobbying by manufacturers and dealers, 37 states have
adopted "safe harbor" provisions that allow them to conceal the damage if the cost of repairs falls
below a specified threshold. In some cases, that means that a new car could sustain thousands of dollars
in damage, but the seller would be under no obligation to inform the car buyer they are being sold
damaged goods. The amount of repairs may also be easy for the manufacturers and dealers to
manipulate, to stay under the threshold, even when the damage is serious.
In this context, the new stance taken by certain auto manufacturers, who are seeking to cut
corners by shifting deliveries of new vehicles from trained, skilled workers to whoever gives them the
lowest bid, is very troubling. We applaud the Teamsters for issuing this report, "Damaged When
Delivered?" which exposes some of the increased risks car buyers will face. As the report documents,
improper handling in shipping can cause structural damage to frames, axles, and other parts essential
for maintaining structural integrity and safety.
It is particularly offensive that GM and Fiat-Chrysler are taking the lead in cutting corners,
threatening the safety and economic security of the taxpayers and car buyers who have footed the
bill—tens of billions of dollars—to bail them out. In their zeal to cut costs, they are also threatening to
undermine consumer confidence in the "new" GM and Fiat-Chrysler, at precisely the moment when
they should be doing everything they can to restore confidence.
CARS and Consumer Action call on GM and Fiat-Chrysler to reverse direction and instead of
cutting corners on auto shipping, take more steps to ensure that their new vehicles are not damaged en
route to dealerships. The car buying public deserves no less.
D A M A G E D
WHEN DELIVERED?
Y
our brand new car or truck might look perfect, but
the way it was delivered to the dealer might very well
have caused damage to the car that could impact its
gas mileage, tire wear and even your safety.
Carhaul Industry
Under Attack
Automakers have very strict rules as to how cars are loaded
and secured when moved from the factory to a dealership.
The carhaul industry
These rules are to ensure that the cars arrive with no scratches
is under attack by
or dents, and more importantly, with no damage to the frame,
GM and Chrysler and
axles or suspension of the car.
this attack will have
serious repercussions,
But Chrysler and GM, in an attempt to save a few dollars, are
including:
changing their practices so that these new cars are now being
brokered by third parties to inexperienced drivers using
inappropriate equipment and methods that endanger the
vehicles they are delivering to unsuspecting car buyers.
• Threats to public
safety;
• Possibly damaged
vehicles; and
The following photographs of brand new Chrysler and GM
• Loss of good auto
vehicles were all taken in October 2009 and document example
industry jobs that
after example of how the practice of replacing professional,
the taxpayer-funded
trained haulers with cut-rate carriers is putting your vehicle,
bailout was sup-
and your safety, at risk.
posed to protect.
www.CarBuyersBeware.com
“ Buyer beware for the consumers and for the dealers.
Consumers are totally unaware that there could be critical
things that are wrong with the vehicles they are purchasing.
”
Dealers could also be buying damaged goods.
–JOHN HASLEY
a professional carhauler for more than three decades
According to the manufacturers’
regulations, all vehicles are to be
secured to the deck of the rig at four
specific locations on the vehicle’s
frame. In the top left of this photo, the
white pickup and black car are secured
by only two chains with S hooks rather
than the required R hooks. This puts
undue stress on the frame of the pickup
that could cause structural damage,
which could compromise the vehicle’s
ability to protect passengers in a crash.
www.CarBuyersBeware.com
Both Chrysler and GM require the use of an R hook to secure vehicles. The
R hook is designed to spread the pressure over more of the frame when it
is secured. In this photo, S hooks, which are inadequate but easier to use,
are securing this vehicle. S hooks isolate the pressure points on the frame
and could cause structural damage.
Auto manufacturers engineer and design their frames to include specific
holes in the frame that are to be used to secure vehicles during transportation. These holes are located where the frame is strongest. But these
vehicles were secured to the rig using the wrong hole in the frame. This
could cause damage to the vehicle’s frame or suspension.
The rear wheels of this new car
“ This is also a growing
public safety issue. As
are improperly settled in a gap in
the rig with nothing to support them.
This could allow damage-causing
shifting to occur during transport.
Even worse, an accident or rapid
deceleration during transport could
cause the vehicle to become
airborne, posing a tremendous
hazard to other motorists.
more inexperienced
carhaulers take to the
roads, the dangers are
mounting for other
motorists as well.
These poorly secured
vehicles could fall off
”
the trucks.
–JOHN HASLEY
There are a number of things that are
puts a tremendous strain on the
wrong about how these Cadillacs were
suspension and alignment, and does
secured to this rig. The cars on the top
not adequately secure the car to the
are supposed to be secured by four
rig. This car could have damage to its
chains using R hooks to specific parts
tires, rims and/or axles that will cause
of the frame with the chains at certain
steering problems, premature tire wear
angles—this was not done. The car at
and lower gas mileage. There could
the bottom is secured with canvas
also be damage to the suspension that
straps that simply run through the rim
would compromise the handling and
of the wheel, which is improper. This
safety of the vehicle.
“ Serious problems
are on the horizon. The
automakers are trying
This Dodge Challenger was also secured
to get work for nothing,
which diminishes the
by running straps through the tire rims,
quality of the carriers
posing the same risks to the car and the
they get to haul their cars.
owner as the methods used to hold down
the Cadillacs in the previous photos. The
inexperienced hauler who loaded these
vehicles also lowered the ramp holding
the Challenger down to the point that it is
The long-term impacts
not only affect the quality
of the cars that are
delivered, but also
”
threaten public safety,
resting on the roof of the Jeep beneath it.
If the Jeep is not already damaged, it will
be as soon as this load shifts in any way.
www.CarBuyersBeware.com
–RODNEY YOUNG
a 26-year carhaul
veteran who has worked
both for professional
carhaul carriers and for a
carhaul broker
1
Photo 1: Correct Wheel Straps
Photos 2 and 3: Incorrect Wheel Straps
3
2
Industry standards require that
strap is secured the vehicle can rock
the tire straps be strapped around
back and forth. This could damage
the outside of the tire, on all tires, as
the parts of the trucks that secure
seen in photo #1. But the back ends
the tires and rims to the rest of the
of the pickup trucks in photos #2 and
car. This also does not adequately
#3 are tied down only with a strap on
prevent vehicles from rolling, so
the rear tire. And the strap is incor-
putting vertical straps on the back
rectly placed straight up and down,
wheels of the white pickup truck at
not around the tire as required. This
the back edge puts anyone driving
means that no matter how tightly this
near this rig at risk.
For about three of his
31 years, Hasley worked
as an independent
owner-operator.
As a result, he has
seen both sides of the
carhaul industry.
“ The difference between
Trained, professional carhaulers know
professional and cut-rate
more than how to properly load a
vehicle to prevent structural damage.
carriers is night and
They also understand the need to deliver
day. Doing work for
vehicles without any scratches or dents.
The professional carhaulers know
that car buyers assume their vehicles are
new, not repaired after being damaged
in transit. They wear uniforms that won’t
cause scratches in case the driver has to
these owner-operator
brokerages is kind of like
living in the wild, wild
west. There are no rules.
lean over or move past a vehicle.
The person who loaded this vehicle had
no such concerns. The photo clearly
shows chains hanging down over the red
But these larger, longtime
professional carriers
Jeep that will sway when moving and
are able to implement
rub up against the vehicle, which will
and enforce rules and
likely cause damage to the paint and
possibly the hood or windshield.
regulations, which exist
to ensure safety and
”
prevent damage.
For more information on how the bailed-out
auto giants are ripping off American
consumers and destroying good jobs, go to
www.CarBuyersBeware.com.
–JOHN HASLEY
AUTO BAILOUT.
JOBS DESTROYED.
SHOWROOM PROTESTS.
ENOUGH.
Frederick A. Henderson
President and CEO, General Motors
Detroit, MI
Dear Mr. Henderson,
This is killing us. We are in the worst economic crisis since the Great Depression. No segment of the economy has been hit harder than
America’s new car and truck industry. And now we learn that carhaul operations are being transferred to nonunion firms, causing the
Teamsters to respond by handbilling at our businesses. With protestors at our showroom doors, we are taking a PR hit because you
substitute cut rate drivers for the professional car haul drivers who have historically delivered our vehicles. Many of these replacement
drivers come with little experience, inadequate training, no accountability, and inadequate equipment. Some of them are hauling new
cars with flat bed trucks or other equipment that is not designed to protect new cars over long distances.
Dealers selling American cars already have the most to worry about in our industry during these difficult times. By large numbers,
American consumers opposed the bailout of GM and Chrysler, which was touted as a job-saving necessity. This latest gambit may
finally do us in. We urge you to reconsider. By protecting long-term car haul employees, you protect your brand and you protect us,
your network of dealerships.
An Open Letter from America’s GM Dealers
Bob Graceo, General Sales Manager
Clay Chevrolet, Norwood, MA
Jack Koczka, Sales Manager
Go Chevy (Auto Nation), Denver, CO
Michael C. Hudgins, Vice President
Hudgins Holiday, Williamsburg, VA
Richard Wheeler, General Manager
Williams Chevrolet, Elkton, MD
Bria Girandola, General Manager
Difeo Chevrolet Oldsmobile,
Jersey City, NJ
James C. Allega, General Manager
Royd Chevrolet, Harrisonville, MO
Michael S. Nemi, General Manager
Jack Matia Chevy, Elyria, OH
K.R. Gutshall, New Car Manager
Grubbs Chevrolet, Woodstock, VA
Jamie Bogley, General Manager
Bogley Chevrolet, Thurmont, MD
Michele Cagliostro, General Sales Manager
Mark Christopher Auto Center, Ontario, CA
Fred Squillo, General Manager
Cadillac of Naperville, Naperville, IL
Jay Garcia, General Sales Manager
Mcguire Buick Pontiac GMC,
North Bergen, NJ
Mike Kastris, General Manager
D’arcy Buick Pontiac GMC, Joliet, IL
Bill Hatfield, Dealer
Hatfield Buick and GMC, Redlands, CA
Mike Maheras, General Sales Manager
Phillips Chevrolet, Frankfort, IL
Bob Politza, General Manager
Castle Chevrolet, Villa Park, IL
Nathan Potratz, Executive Manager
Gordon Chevrolet - Jacksonville,
Orange Park, FL
Bob Van Ramshorst, General Manager
Ridgeway Chevrolet, Lansing, IL
Carey Lynett, General Sales Manager
Woody Buick Pontiac GMC, Elgin, IL
Chris Hurd, CEO
The Hurd Automall, Johnston, RI
Chris Igae, Owner
Heartland Chevrolet, Liberty, MO
Chuck Weck, President
Schaumburg Buick GMC, Schaumburg, IL
David Ferraez, President
Green Brook Pontiac Buick GMC Hummer,
Green Brook, NJ
Jeanine S. Hein, General Manager
Serpentini Chevrolet Of Strongsville,
Strongsville, OH
John D. Clark, Vice President
Avenue Chevrolet, Batavia, IL
John M. Anderson, President
Courtesy Chevrolet, San Jose, CA
Pat O’Brien, President
Pat O’brien Chevrolet West, Westlake, OH
David P. Haines, Controller
Lang Chevrolet, Beavercreek, OH
John T. Widger, General Manager
Lou Bachrodt Chevrolet, Rockford, IL
Richard Mignanelli, General Sales Manager
Paul Masse Buick GMC Truck,
Woonsocket, RI
Denny Danfield, General Manager
Al Serra GM, Grand Blanc, MI
John T. Widiger, General Manager
Lou Bachrodt Buick Pontiac GMC,
Rockford, IL
Robert E. Toth, General Sales Manager
Sweeney Buick Pontiac GMC,
Youngstown, OH
Keith M. Laylo
Fairway Chevy, Fairway Chevy,
Hazleton, PA
Robert E. Toth, General Sales Manager
Sweeney Chevrolet, Youngstown, OH
Edward J. Pobur, General Manager
Patsy Lou Chevrolet, Inc., Flint, MI
Ernie Bezema, General Manager
Bezema Buick Pontiac GMC,
Norwood, MA
Frank M. Pezzola, General Manager
Frank’s Pontiac-GMC, Lyndhurst, NJ
Frank Zackary, Manager
Roberts Pontiac GMC, Kansas City, MO
Fred Squillo, General Manager
Cadillac Of Naperville, Naperville, IL
George M. Freibott, General Manager
Gold Coast Cadillac-Hummer-Saab,
Oakhurst, NJ
Greg Greenwood, President
Hubbard CHEVROLET, INC., Hubbard, OH
Greg Greenwood, President
Greenwood Chevrolet, Inc.,
Austintown, OH
Harold Berden, General Manager
Major Chevrolet, Long Island City, NY
Kevin Holdorf, General Manager
Bellavia Chevrolet Buick,
East Rutherford, NJ
L. P. Roath, Sales Manager
Courtesy Chevrolet, Salisbury, MD
L. Vince, General Manager
Woodfield Chevy, Schaumburg, IL
Leo E. Karl III, President
Karl Chevrolet, New Canaan, CT
Leroy Walker Jr., Sales Manager
Jack Winegardner Chevrolet,
Ft. Walsh, MD
Lou Girandola, UCM
Lynn Chevrolet, Inc., Kearny, NJ
Lou Meier, Sales Manager
Blossom Chevrolet, Indianapolis, IN
Sam Mitchell, Vice President
Mitchell Chevrolet, Marlinton, WV
Sevil Begoli, Used Car Manager
Village Buick Pontiac GMC, Naperville, IL
Steven K. Montgomery, General Manager
Bob Montgomery Chevrolet, Louisville, KY
Thomas Young, Executive Manager
Concord Chevrolet, Concord, CA
Thomas Young, Executive Manager
Saturn Of Concord, Concord, CA
Tim McCord, General Manager
Hondru Chevrolet, Elizabethtown, PA
Tom Kelley, President
Kelley Automotive, Fort Wayne, IN
Tom Schmitz, General Manager
Lupient Chevrolet, Bloomington, MN
Van A. Burke, Vice President
Cardinal Chevrolet, Appomattox, VA
Brad Williams, General Sales Manager
Libertyville Chevrolet, Libertyville, IL
Brett Russell, VP/GM
Russell Chevrolet, Sherwood, AR
Craig B. Spellings, Sales Manager
Chuck Graves Chevrolet Cadillac,
Humboldt, TN
Ken Ross, President
Team Chevrolet Cadillac of Vallejo,
Vellejo, CA
Larry P. Bryer, General Service Manager
Heinrich Chevrolet, Lockport, NY
Larry Smith, General Manager
Power Chevrolet, Peoria, AZ
Larry Smith, General Manager
Power Chevrolet Arrowhead, Peoria, AZ
Mike Whitney, General Manager
Dutton Motors Cadillac, Riverside, CA
Peter Panos, Sales Manager
Mike Haggerty GMC, Oak Lawn, IL
Richard Diver, Dealer - Operator
Diver Chevrolet, Wilmington, DE
Susan Ianni, General Manager
Gordon Chevrolet, Garden City, MI
Terry Mutton, Inventory Manager
Saturn of Clarence, Williamsville, NY
Dave Mac, Sales Manager
Castle Buick/Pontiac/GMC, Riverside, IL
Terry Mutton, Inventory Manager
Saturn of Orchard Park, Orchard Park, NY
Fred Squillo, General Manager
Cadillac of Naperville, Naperville, IL
Terry Mutton, Inventory Manager
West Herr Chevrolet of Hamburg,
Hamburg, NY
Garry Foltz, General Manager/Vice President
Buhler Pontiac, Eatontown, NJ
J. Buescher, General Service Manager
Greiner GMC, Victorville, CA
Terry Mutton, Inventory Manager
West-Herr Chevrolet of Orchard Park,
Orchard Park, NY
Jack Bell, General Manager
Currie Motors Chevrolet, Forest Park, IL
W. B. Sykes, General Manager
Pete Baur Buick Pontiac GMC,
Strongsville, OH
James P. Ursomarso, Vice President
Union Park Pontiac Buick GMC,
Wilmington, DE
Richard Wheeler, General Manager
Williams Chevrolet, Elkton, MD
Jason Loukota, Financial Manager
Serra of Jackson, Jackson, TN
Joseph Simon, GSM
Balise Chevrolet of Warwick, Warwick, RI
Joshua Fox, President
Bill Fox Chevrolet, Inc., Rochester Hills, MI
Keith Kissane, General Sales Manager
Ettleson Buick/Cadillac/GMC, Hodgkins, IL
K.R. Gutshall, New Car Manager
Grubbs Chevrolet, Woodstock, VA
Sergio Marchionne
CEO, Chrysler Group LLC
Auburn Hills, MI
AUTO BAILOUT.
JOBS DESTROYED.
SHOWROOM PROTESTS.
ENOUGH.
Dear Mr. Marchionne,
This is killing us. We are in the worst economic crisis since the Great Depression. No segment of the economy has been hit harder than
America’s new car and truck industry. And now we learn that carhaul operations are being transferred to nonunion firms, causing the
Teamsters to respond by handbilling at our businesses. With protestors at our showroom doors, we are taking a PR hit because you
substitute cut rate drivers for the professional car haul drivers who have historically delivered our vehicles. Many of these replacement
drivers come with little experience, inadequate training, no accountability, and inadequate equipment. Some of them are hauling new
cars with flat bed trucks or other equipment that is not designed to protect new cars over long distances.
Dealers selling American cars already have the most to worry about in our industry during these difficult times. By large numbers,
American consumers opposed the bailout of GM and Chrysler, which was touted as a job-saving necessity. This latest gambit may
finally do us in. We urge you to reconsider. By protecting long-term car haul employees, you protect your brand and you protect us,
your network of dealerships.
An Open Letter from America’s Fiat/Chrysler Dealers
Alan Graf, President
Teterboro Chrysler Jeep, Little Ferry, NJ
Jeff L. Briggs, General Manager
Olathe Dodge Chrysler Jeep , Olathe, KS
Billy McMahon, Director of Sales
Victorville Motors, Victorville, CA
Jennifer Shelby, President
Shelby Motors, Champaign, IL
Carlos Rodriguez, General Sales Manager
Planet Dodge Chrysler Jeep , Miami , FL
Jerry Cenino, Finance Director
Decozen Chrysler Jeep , Verona, NJ
Charles C. Eddy Jr., Vice President
Bob & Chuck Eddy Chrysler Dodge Jeep,
Austintown, OH
John Clark, General Manager
Jack Wolf Chrysler, Belvidere, IL
Criag W. Ruskaup, Sales Manager
O’Daniel Automotive Group,
Fort Wayne, IN
Curtis B. Kassel, Vice President
Chrysler Jeep of North Olmsted,
North Olmsted, OH
John Kaye, President
DuPage Dodge, Wheaton, IL
Keith J. Purdon, General Sales Manager
Freedom Chrysler , Lexington, KY
Kenneth Thomas, General Manager
Telegraph Dodge, Taylor, MI
Mike Smith, Dealer
Orlando Dodge, Chrysler, Jeep,
Orlando, FL
Timothy E. Ryan, General Manager
Warnock Dodge, Chrysler, Jeep,
East Hanover, NJ
Paul Hrnchar, Vice President
Strongsville Dodge, Strongsville, OH
Timothy E. Ryan, General Manager
Warnock Dodge Chrysler Jeep (Morristown), Morristown, NJ
Paul McSkimming, General Sales Manager
Riverfront Chrysler Jeep Dodge,
N. Aurora, IL
Paul Steel, Vice President
Southfield Dodge Chrysler Jeep,
Southfield, MI
R. J. Kufletner, President
Salem Chrysler Jeep Dodge ,
Salem, OH
Kevin Kress, General Manager
Commonwealth Dodge, Louisville, KY
R. J. Kufletner, President
Columbiana Chrysler Jeep Dodge,
Columbiana, OH
David P. Kelleher, President
David Dodge, Glen Mills, PA
Kevin Lawyetz, General Manager
Jay Wolfe Dodge Chrysler Jeep, Lees
Summit, MO
Richard Ferraro, Detail Manager
Ferman Chrysler Jeep Dodge at
Cypress Creek, Lutz, FL
Elezar Sanchez, Sales
Moss Bros Chrysler Jeep Dodge,
San Bernardino, CA
Koehler, Regional Vice President
Sonic Massey Plymouth, Columbus, OH
Richie Rescithe, General Manager
South Chicago Dodge Chrysler Jeep,
Chicago, IL
Dave Lusz, General Manager
Anderson Dodge Jeep, Rockford, IL
Eugene C. Barbera, President
Gary Barbera Chryslerland,
Philadelphia, PA
Frank Sorrento, General Sales Manager
Grava Chrysler-Jeep & Dodge,
Medford, MA
Hanoi Bendell, General Manager
Major Chrysler Jeep Dodge,
Long Island City, NY
Mario Weber, General Manager
Midway Dodge, Chicago, IL
Mark Zavist, Chief Operating Officer
DMT Automotive Enterprises (Toresco),
Springfield, NJ
Mike Miller, Sales Manager
Zeigler Chrysler Dodge Jeep,
Schaumburg, IL
Rocco Peluso, Sales Manager
Albany Dodge, Albany, NY
Thomas Eysie, General Sales Manager
Central Chrysler Jeep, Raynham, MA
Thomas Eysie, General Sales Manager
Central Chrysler Jeep Dodge of Norwood,
Norwood, MA
Tony Rahimzadeh, General Sales Manager
North Point Chrysler Jeep Dodge ,
Winston-Salem, NC
Winston R. Pitiman, Sr., President
Cardinal Dodge, Louisville, KY
Alan Siegel, General Manager
Mancari Chrysler, Oak Lawn, IL
Alex Gomez, Sales Manager
Garden City Jeep Chrysler Dodge,
Hempstead, NY
Bob Cleveland, General Sales Manager
Ramsey Chrysler Jeep Dodge, Ramsey, NJ
Dave Butkus, President
Freehold Chrysler, Freehold, NJ
Frank Teuton, General Manager
Southland Dodge, Houma, LA
Garry Foltz, General Manager
Buhler Chrysler Jeep, Hazlet, NJ
J.M. Hilleny, President
Transitowne Dodge Chrysler Jeep of
Williamsville, Williamsville, NY
Joe Ellsasser, General Manager
Golling Chrysler, Jeep, and Dodge,
Bloomfield Hills, MI
John Berry, General Manager
Bonneville and Son, Manchester, NH
John V. Werner, President
Werner Automotive, Belford, NJ
Johnny Pipitt, Sales Manager
Redlands Chrysler, Jeep, Dodge, Redlands, CA
Kasey R. Shirey, Sales Manager
Glenbrook Dodge Chrysler Jeep,
Fort Wayne, IN
Matt Roe, Owner
Moore Chrysler Jeep Inc., Peoria, AZ
Michael P. Sullivan, New Car Manager
Overland Park Dodge Jeep,
Overland Park, KS
Oneita M. Fellows, General Manager
Crestwood Dodge Jeep, Garden City, MI
Remsen Strzub, President
Remsen Dodge, Hazlet, NJ
Ryan Burke, New Car Manager
Suburban Chrysler Jeep Dodge, Inc.,
Novi, MI
Terry Mutton, Inventory Manager
West-Herr Chrysler Jeep,
Orchard Park, NY