Zipcar, the popular car rental service, has been hit with a historic fine by the National Highway Traffic Safety Administration (NHTSA). The federal safety agency has penalized Zipcar for renting vehicles that had open, unrepaired recalls. This marks the first time that the NHTSA has imposed such a fine, highlighting the importance of ensuring the safety of rental vehicles on the road.
Key Takeaway
Zipcar has been fined by the NHTSA for renting out vehicles with open, unrepaired recalls, marking the first-ever fine of its kind. The recalled vehicles in question are 2015-2017 Ford Transit vans, which may experience power loss and unintended vehicle movement. Zipcar is required to pay a civil penalty of $300,000 but may reduce it by meeting NHTSA demands. This incident highlights the importance of rental car companies prioritizing the safety of their vehicles.
A Closer Look at the Recall
One particular recall that caught the attention of the NHTSA in their investigation pertains to 2015-2017 Ford Transit vans. In approximately 373,000 Transits produced during those years, there is a concern regarding the coupling between the transmission and driveshaft. This coupling may deteriorate and crack, potentially leading to power loss while driving. Additionally, it could result in unintended vehicle movement while the van is in park, as stated in the 2017 NHTSA report.
Zipcar’s Response
Zipcar, in response to the NHTSA’s findings, released a statement indicating that less than 50 vehicles out of their global fleet of 12,000 were found to be in violation of NHTSA policies. The company took swift action by implementing new policies and process improvements since 2017 to address the issue of recalled vehicles in their fleet.
Regarding the fine itself, Zipcar is required to pay a civil penalty of $300,000. However, they have the opportunity to avoid paying half of the penalty by meeting certain demands set forth by the NHTSA, which includes updating employee training materials. This serves as a clear signal that the NHTSA is committed to ensuring the safety of individuals who rent vehicles from companies like Zipcar.
Broader Implications
While Zipcar is the first company to face such a fine from the NHTSA, it is not the only rental company under investigation. The NHTSA has also launched an investigation into Hertz, further emphasizing the agency’s dedication to upholding safety standards within the rental car industry.
In unrelated regulatory news, the United States Department of Justice (DOJ) recently filed a lawsuit against eBay. The lawsuit alleges that eBay sold and distributed a significant number of products that pose environmental and public health risks. The DOJ claims that eBay knowingly sold thousands of illegal, poisonous, and polluting products, underscoring the need for heightened consumer protection measures.
