Vehicle-to-vehicle (V2V) communications under dense urban environments usually experience severe keyhole fading effect, especially for multi-input multi-output (MIMO) channels, which degrades the capacity and outage performance due to the rank deficiency. To avoid these, the integration of MIMO and Type-I hybrid automatic repeat request (HARQ) is proposed to assist V2V communications in this paper. By using the Meijer G-function, the outage probability of the proposed V2V communications system is derived in closed form. With the result, meaningful insights are gained by conducting the asymptotic outage analysis. Specifically, it is revealed that full-time diversity order can be achieved, while full spatial diversity order is unreachable as compared to Type-I HARQ aided MIMO systems without keyhole effect. Moreover, we prove that the asymptotic outage probability is a monotonically increasing and convex function of the transmission rate. Finally, the analytical results are validated through extensive numerical experiments.