Autobahn Rent A Car suspends vehicle rental business as debts mount

“We know this situation has created significant hardship for affected drivers, and we have engaged a number of them. Drivers depend on their vehicles to earn a living, and we take their livelihoods seriously,” said Assistant Secretary General of NTUC Yeo Wan Ling, who is also adviser to the National Private Hire Vehicles Association (NPHVA) and the National Taxi Association (NTA).

“NPHVA and NTA will continue to work with LTA and platform operators to protect and support our drivers.”

CAR INSURANCE TERMINATED

Autobahn owed more than S$300 million (US$234 million) as of Dec 23. Creditors include DBS, UOB, OCBC, Maybank and other finance companies. 

Autobahn and a group of related companies had applied to the High Court for a six-month moratorium for protection against creditor actions.

Following the withdrawal of the application, insurers have terminated car insurance policies, which are a legal requirement for any vehicle to be driven on public roads.

“There remain operational difficulties without the protection of the court from enforcement of claims and repossession of the cars,” Fervent Chambers said. 

In the joint statement, LTA said it has received information that the car insurance for some Autobahn cars has not been renewed or has been cancelled.

“LTA has given them notice that as the owner, they must ensure proper insurance cover and if there is a lapse in insurance, Autobahn must ensure that the hirer is informed and that the vehicle is not used on the roads,” it added.