Zipcar has been slapped with a $300,000 tremendous after U.S. regulators discovered that the car-sharing corporate allowed customers to rent vehicles with open recalls, violating federal motor protection legislation
ByThe Associated Press
October 16, 2023, 5:06 PM
FILE – A Zipcar emblem is proven, Jan. 2, 2013 in New York. Zipcar has been slapped with a $300,000 tremendous after U.S. regulators discovered that the car-sharing corporate allowed customers to rent vehicles with open recalls, violating federal motor protection legislation. The civil penalty is part of a consent order introduced through the National Highway Traffic and Safety Administration — marking the primary enforcement motion in opposition to a condominium vehicle corporate over recalls. (AP Photo/Mark Lennihan, document)
The Associated Press
NEW YORK — Zipcar has been slapped with a $300,000 tremendous after U.S. regulators discovered that the car-sharing corporate allowed customers to rent vehicles that had open recalls, violating federal motor protection legislation.
The civil penalty is part of a consent order that the National Highway Traffic and Safety Administration introduced Monday. It marks NHTSA’s first enforcement motion in opposition to a condominium vehicle corporate over recalls, the company mentioned.
“Vehicles with open, unrepaired recalls pose a safety risk to everyone on the road,” NHTSA Acting Administrator Ann Carlson said in a statement. “The agency will continue to use the full scope of its enforcement authorities to protect the public from safety defects in their personal vehicles or in a vehicle they rent.”
Under the consent order, part of the $300,000 penalty is ready to be paid up entrance — whilst the opposite $150,000 might be deferred and may just develop into payable within the match of long run violations, NHTSA mentioned. In addition, the corporate is needed to put up an audit of all Zipcar vehicles with recalls open at any time inside 150 days after the consent order and supply updates to worker coaching fabrics, amongst different compliance opinions.
Zipcar agreed to the consent order. According to the NHSTA, the corporate additionally says it is made more than one enhancements to recall insurance policies and procedures since 2018 — when the company opened an investigation after getting information that Zipcar rented no less than one car recalled in 2017, the Ford Transit, with out making upkeep.
Based on its inquiry, NHSTA made up our minds “certain unremedied recalled vehicles” have been rented thru Zipcar in 2017 and 2018, the consent order revealed Monday notes.
“At Zipcar, we prioritize our members’ safety and take manufacturers’ recalls very seriously,” the company said in a statement, adding that the NHSTA agreement relates “a 2017 recall in which less than 50 vehicles out of (Zipcar’s) 12,000 global fleet were found in violation.”
Zipcar, a subsidiary of Avis Budget Group, rents vehicles through the hour or day.
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