© Reuters. Snow covers vehicles including a Zipcar, following significant snowfall overnight in Toronto, Ontario, Canada December 12, 2016. REUTERS/Hyungwon Kang/File photo
(Corrects date of acquisition to May 2013 from May 2023 in paragraph four)
By David Shepardson
WASHINGTON (Reuters) -U.S. auto safety regulators said on Monday car-sharing firm Zipcar has agreed to pay a $150,000 fine after a government investigation found it allowed customers to rent vehicles with uncompleted recalls.
Zipcar could be forced to pay another $150,000 if it does not comply with the terms of the settlement with the National Highway Traffic Safety Administration (NHTSA) following a more than five-year government investigation.
A 2015 law requires rental car companies with 35 or more vehicles to complete recall repairs before they rent vehicles.
The agency is requiring Zipcar to submit an audit report of all Zipcar vehicles with uncompleted recall repairs at any time within 150 calendar days after the effective date of the settlement. Avis Budget (NASDAQ:) Group completed its acquisition of Zipcar in May 2013. Zipcar did not immediately comment.
“Vehicles with open, unrepaired recalls pose a safety risk to everyone on the road,” said Ann Carlson, NHTSA’s acting administrator. “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.”
The settlement agreement lasts one year and may be extended an additional year at NHTSA’s discretion. NHTSA said Zipcar has made improvements to its recall policies and procedures since the agency opened its investigation, including implementing a centralized, real-time automated documentation system for recalled vehicles.
Zipcar has more than 760,000 members in the United States, Canada and Europe.
In December, NHTSA said it was investigating if Hertz rented unrepaired recalled vehicles to customers after the agency said it was in receipt of information that indicated the company “rented vehicles to customers without having performed required recall repairs.”
Hertz, which operates the Hertz, Dollar and Thrifty vehicle rental brands, said in December it was “committed to providing safe rentals for our customers.”
