Zipcar was fined after allowing customers to rent cars with open recalls that were beyond repair
NEW YORK (AP) — Zipcar has been fined $300,000 after U.S. regulators found the car-sharing company allowed customers to rent cars that had open recalls, violating the federal automobile safety law.
The civil penalty is part of a consent order announced by the National Highway Traffic and Safety Administration on Monday. This marks the first enforcement action NHTSA has taken against a rental car company due to the recalls, the agency said.
“Vehicles with open, unrepairable recalls pose a safety risk to everyone on the road,” NHTSA Acting Administrator Anne Carlson said in a statement. Their personal cars or in a car they rent.”
Under the consent order, half of the $300,000 fine is scheduled to be paid upfront, while the other $150,000 will be deferred and could become payable in the event of future violations, NHTSA said. In addition, the company must provide an audit of all Zipcar vehicles with recalls opened at any time within 150 days after the consent order and provide updates to employee training materials, among other compliance reviews.
Zipcar agreed to the consent order. According to NHSTA, the company also says it has made multiple improvements to recall policies and procedures since 2018 – when I opened an investigation After receiving information that Zipcar had leased at least one vehicle recalled in 2017, a Ford Transit, without making any repairs.
Based on its investigation, NHSTA determined that “certain recalled unaddressed vehicles” were rented through Zipcar in 2017 and 2018, the consent order was posted Monday.
“At Zipcar, we prioritize the safety of our members and take manufacturer recalls seriously,” the company said in a statement, adding that the NHSTA agreement relates to “a 2017 recall in which fewer than 50 vehicles were recalled out of Zipcar’s global fleet of 12,000 vehicles.” . “It was found to be in violation.”
Zipcar, a subsidiary of Avis Budget Group, rents cars by the hour or by the day.
