Auto Dealers and Manufacturers Call For the Immediate Repeal of Antiquated Vicarious Liability Law

Groups Reveal that Law Costs New York Car Buyers $100+ Million

NEW YORK, May 4 -- Vicarious liability-the antiquated legal concept that holds a leasing company liable for the actions of a negligent driver-is costing consumers more than $100 million and eroding choice from the market place, according to information to be released by the Alliance of Automobile Manufacturers and the Greater New York Automobile Dealers Association on Thursday, May 6, at 10:00 a.m.

Vicarious liability, which has already forced Buick, Pontiac, Cadillac, Saturn, GMC, Chevrolet, Saab, Ford, Lincoln, Mercury, Mazda, Subaru, Hyundai, Porsche and every major retail bank in New York out of leasing threatens to diminish consumer choice. Chrysler, Jeep, and Dodge are also expected to pull out of leasing in New York shortly.

Vicarious liability has pushed up the cost of owning a car in New York, as automakers that still offer leases are forced to add additional charges and new non-lease financing options increase the sales tax costs to consumers.

At the press conference on Thursday, the participants will outline the additional costs New York consumers pay for cars as a result of vicarious liability, which averages over $700 per vehicle.

   What:  Industry Call to End Vicarious Liability; Law Costs New York
          Car Buyers $100+ Million.  Why does this archaic law still exist?

   Who:   -- Alliance of Automobile Manufacturers (AAM) and representatives
          of the nine automakers that they represent-BMW,
          DaimlerChrysler, Ford, GM, Mazda, Mitsubishi, Porsche, Toyota
          and VW-will be on hand
          -- Greater New York Automobile Dealers Association
          -- New York State Automobile Dealers Association
          -- Consumers who have lost the ability to lease their next car

  When:   Thursday, May 6, 2004 at 9:30 a.m.

  Where:  Manhattan Auto Group (Ford)
          787 11th Avenue (Between 54 & 55th streets)
          New York, NY

Dealers Association