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The government is stepping in to help drivers impacted by the Takata airbag recall by arranging discounted rental cars and free public transport passes for those whose vehicles have been immobilized.
According to Constantinos Kontos, president of the Cyprus Association of Car Rental Owners, the Ministry of Transport has asked rental companies to provide cars at reduced rates to affected drivers. However, rental firms are also urging the state to cover part of the cost, arguing that the financial burden should not fall solely on consumers or rental companies.
“The cost of long-term rentals is too high for many middle- and low-income drivers,” Kontos said, noting that while rental companies are willing to offer discounts, prices will inevitably rise as the tourist season approaches. “Even at a discount, the cost can be significant. We’re suggesting the state step in to help cover part of the expense.”
State Assistance in Question
Transport Minister Alexis Vafeadis has acknowledged the issue but clarified that government funding is currently not an option. “There is no approval from the Council of Ministers or the Ministry of Finance to subsidize rental costs,” he stated.
Despite this, rental companies are ready to assist. Some firms could see a significant portion of their fleet affected by the recall, particularly smaller businesses that rely on second-hand vehicles. Larger companies, which typically buy new cars with European safety approvals, are expected to be less impacted.
With many vehicles expected to be taken off the road for repairs, Kontos warned of potential delays due to overwhelmed mechanics. “The workload on repair crews is going to be immense, meaning other vehicles requiring maintenance may also be sidelined,” he said.
Concerns Over MOT Certificate Rules
Rental companies are also voicing concerns about new legislation requiring a certificate proving that a vehicle is not subject to recall before it can pass an MOT inspection. Kontos argued that lawmakers overlooked the practical implications, resulting in an unnecessary administrative and financial burden.
“A company with 1,000 vehicles could face an additional €160,000 per year just in certificate costs,” he explained. The same requirement also applies to vehicle transfers, which could further complicate operations for rental businesses.
To address these concerns, the Department of Road Transport (TOM) is implementing a digital system to check recall status automatically, eliminating the need for certificates in some cases. However, rental firms still worry about potential disruptions and costs.
As Cyprus navigates the fallout from the Takata recall, the coming weeks will be crucial in determining whether the government takes further steps to ease the financial strain on affected drivers and businesses alike.
*With information from CNA
