Hertz (NASDAQ:HTZ) shares gained ground Wednesday after the National Highway Traffic Safety Administration said it was investigating whether the car rental company rented out vehicles with open recall issues yet to be repaired. NHTSA is seeking additional information from Hertz, which said it will cooperate with the request.
This morning’s news release said, the safety agency said it has specific information in regard to 2018-2020 model years Nissan and Ford vehicles rented by Hertz with unrepaired safety recalls, which would violate the Federal Motor Vehicle Safety Act.
The NHTSA has opened an investigation to audit Hertz’s recall record. The agency has the authority to fine companies that don’t comply with the safety act.
Earlier this month, Hertz made headlines when naming veteran marketing and sales executive Wayne Davis as Executive Vice President, Chief Marketing Officer (CMO), effective January 3, 2023 . In this role, Davis will be responsible for leading the Hertz, Dollar and Thrifty brands and shaping the company’s marketing strategy to drive effective brand reach and customer engagement. Laura C. Smith , who has led marketing for the last two years, will continue in her role as Executive Vice President, Global Sales and Customer Experience.
Davis joins Hertz with more than 20 years of marketing, sales, and business development experience across multiple industries. For the last four years, he has led the mass premium Café brand for GE Appliances, a Haier Company. Under his leadership, Café has more than tripled in size and is one of the fastest growing brands in the appliance industry.
HTZ shares took on 16 cents, or 1.1%, to $15.07.