US probes reports that Hertz rented cars with open recalls
A sign is posted in front of a Hertz car sales and rental car office on August 8, 2017 in South San Francisco, California. Rental car companies are seeing a drop in earnings and stock prices as they struggle to deal with large inventories and competition from ridesharing companies Uber and Lyft. Avis had initially forecast annual profits of $3.50 a share but recently had to change that forecast to $2.40 to $2.85 a share. (Photo by Justin Sullivan/Getty Images)
DETROIT (AP) — The U.S. government’s road safety agency says it is investigating allegations that Hertz rented vehicles to customers without getting required recall repairs.
The National Highway Traffic Safety Administration said Tuesday that it has information indicating Hertz rented vehicles with unrepaired safety recalls. The agency says that would violate the federal Motor Vehicle Safety Act.
A congressional provision stops companies from renting vehicles unless recall repairs have been made.
The measure was originally named the Raechel and Jacqueline Houck Safe Rental Car Act. The sisters were killed in a 2004 head-on crash when a power steering hose defect in a rented Chrysler PT Cruiser caused a fire and the car went out of control.