Tag: Hertz

By on April 16, 2021

rental car companies

Rental car companies are their own worst enemies, having sold off much of their fleets during the pandemic’s height. With travel restrictions easing in many places they find themselves with no inventory.

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By on March 9, 2021

Hertz

Hertz will custom wrap a rental vehicle to mark an occasion or celebration, a program that appears to be available throughout their system in locations across the U.S.

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By on November 2, 2020

Rental-car agencies, shunned by a population that didn’t know whether it was safe to go outside for most of the year, have reportedly started to turn things around. While the recovery didn’t come soon enough to save Hertz from having to declare bankruptcy, the summer months were much kinder to the industry as a whole. Despite the likelihood of 2020 remaining an unprofitable year, the final two quarters should help rental groups recoup some of the sustained losses.

A recent assessment conducted by the Wall Street Journal suggested that the industry is benefiting from a population that continues to shun air travel during the pandemic and elevated used vehicle pricing. While discount prices actually hampered Hertz right when it needed a miracle, secondhand auto rates surged through the latter half of the summer and helped stabilize the rest of the vehicle rental industry.

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By on August 12, 2020

Colossal rental car provider Hertz is on the hunt for life-sustaining cash, but raising it itself now seems out of the question. Hertz Global Holdings, which filed for bankruptcy in May, recently moved ahead with a plan to raise a cool half-billion through a stock sale, only for the Securities and Exchange Commission to step in and say “hey, whoa, no more of that.”

Left with no other option, Hertz is now seeking a bankruptcy loan. (Read More…)

By on July 29, 2020

While negotiating the terms of its bankruptcy with creditors, Hertz has been informed that it can sell 200,000 would-be rental vehicles to help cover its debts.

According to a filing with the U.S. Securities and Exchange Commission (approved Friday in the U.S. Bankruptcy Court in Wilmington, DE), Hertz will be allowed to “dispose of at least 182,521 lease vehicles” between now and the end of 2020. Proceeds will then be used to pay off $650 million it owes lenders, with most funds going toward principal payments on financed vehicles.

With the pandemic knocking out manufacturing for months, this is likely welcome news for buyers eyeballing the secondhand market. Dealer lots are light on fresh product at present and times are getting tougher for consumers, making used vehicles all the more appetizing. Even though former rentals have a tenancy to be abused, they typically to go for a bit less than something living a more carefree existence —  and Hertz will be desperate to offload them quickly.

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By on June 18, 2020

The Securities and Exchange Commission has urged the recently bankrupted Hertz to halt the sale of stock. The rental agency had hoped to raise half a billion on the sale but repeatedly warned that would-be buyers were gambling, as the stock may soon be worthless.

Bizarrely, this hasn’t discouraged investors from glomming onto shares of bankrupt and near-bankrupt companies. Despite the global economy supposedly hurdling into a recession and mass unemployment, Wall Street hasn’t signaled that anything is amiss.

Still, the SEC has grown concerned with the trend and decided to address them with Hertz, according to a recent filing. Trading of Hertz Global Holdings Inc. was halted on Thursday, placing investors in a holding pattern as everyone speculates whether the bankrupt car renter will have to revise its plan to raise cash by selling new shares.  (Read More…)

By on May 24, 2020

The writing was on the wall for the last month, at least. Hertz Global Holdings, Inc. has filed for Chapter 11 bankruptcy protection after the coronavirus pandemic sent rentals — and revenue — crashing, forcing the debt-laden company into a corner that’s proven near impossible to escape from.

One of the world’s largest car rental agencies, Hertz laid off more than 12,000 workers in March and furloughed another 4,000 before scrapping 90 percent of the new car acquisitions it had on the books for 2020. While that might have stopped some of the bleeding, the core issue remains: few people are travelling, and even fewer are renting cars. (Read More…)

By on May 22, 2020

Hertz Global Holdings Inc. has been in discussions with creditors in the hopes of making a deal that addresses its missed debt payments and gives the company further leeway. Rental agencies are struggling, with Hertz in the roughest shape of all. All thanks to a certain virus, business has dried up, and Hertz finds itself  sitting on a pile of quickly depreciating cars it cannot afford to replace. The company’s stock also plummeted at the end of February — going from $20.29 per share to today’s $2.86.

The rental agency has until Friday to negotiate an extended forbearance agreement or drop $400 million in lease payments, but news has surfaced that lenders think Hertz declaring bankruptcy may be just as good a solution.  (Read More…)

By on May 19, 2020

Reeling from the pandemic-born financial crisis, Hertz is unloading some particularly cost-intensive vehicles from its rental fleet. While plenty of these vehicles are old stock it would have had to get rid of eventually, Hertz is limiting fleet turnover this year, recently cancelling roughly 90 percent of new vehicle orders it had on the books for 2020. The company’s also selling some of the special performance vehicles slotted into its lineup every year ⁠— and not all of them seem to have accrued the kind of mileage that would normally warrant a sale.

We’ve chronicled the rental agency’s plight for a while now; Hertz seems to be on the brink of declaring bankruptcy, making it a good case study for the perils confronting auto rental groups everywhere. While we don’t think selling a handful of high-horsepower Chevrolets will be anyone’s saving grace, it might help Hertz scrounge up some loose cash — and provide a half-decent opportunity for enthusiasts to procure a bargain project car.  (Read More…)

By on May 18, 2020

Rental car giant Hertz, which recently struck a deal with creditors amid debt incurred by the coronavirus pandemic, has a new CEO.

Paul Stone, formerly the company’s executive vice president and North American chief retail operations officer, was named to the top spot on Monday. There, he’ll face a full plate, though saving the company will be Job One. (Read More…)

By on May 5, 2020

Lenders are cutting Hertz a break by affording the company an extended grace period, giving it a chance to cope with its debt. Last we checked on the rental agency, things weren’t going well. With governments cracking down on movement amid the coronavirus pandemic, no one is going anywhere — and the Hertz’s bottom line showcases exactly how bad this has been for business. Hertz had to bring in economic advisors to help the business manage its swiftly mounting debt load as it discussed how to avoid bankruptcy.

Similarly hit by the pandemic, airlines got a multi-billion-dollar bailout. Agencies like Hertz, Avis, and Enterprise, however, have had to seek their aid elsewhere, all the while hoping the U.S. Treasury Department answers their plea. Thus far, it’s been crickets.

Car renters are confronting a harrowing reality. They need to refresh their gigantic fleets in a period where no one can turn a profit, there’s little promise of a swift recovery, and used car values are cratering. Hertz started laying off workers in March as customers evaporated. By the end of April, it also announced it was defaulting on lease payments related to its fleet. With creditors rarely unclear about when they want their money, things were looking grim.  (Read More…)

By on April 24, 2020

Hertz Global Holdings is reportedly bringing in economic advisors to help the business manage its mounting debt. Unsurprisingly, everyone in the world simultaneously canceling their vacation plans wasn’t great for business. Your author has had to cancel four trips this year, three of which would have included going from an airport to a rental agency. With others forced to do the same as the events and places they planned on enjoying closed up shop, the prognosis is not been good for the borrowed-automobile sector.

When we last checked in, rental agencies had slashed rates to an almost unimaginable degree. Realizing that cheap rentals actually earn you less money when you have a surplus of vehicles nobody wants, those prices have begun creeping back towards normal. But financial problems have not abated. Still, we can put a positive spin on this since you’re probably tired of hearing bad news. Instead of this signaling disaster for rental agencies, think of Hertz bringing in restructuring experts as a sign that it’s being proactive in coping with a truly undesirable situation.

Feel better? Alright, let’s bring you back to reality.  (Read More…)

By on September 23, 2019

If you’re a frequent car renter, odds are good that you’re not enthralled with the experience. That goes double if you aren’t putting payments on a corporate account because you’re weighing the price against what you actually need. Most of the time this leaves you ping-ponging between a dirt-cheap “compact” that’s technically a subcompact and a slightly larger “midsize” that costs an extra twelve dollars per day.

It doesn’t have to be this way. There are countless ways to trick rental agencies into giving you a free upgrade and plenty of programs that reward repeat customers for their loyalty, but you can also bite the bullet and simply splurge for a vehicle you might actually want to drive. Most companies have special divisions offering exotic, performance, and premium luxury models. But only Hertz will let you rent a specially designed, 750-horsepower Chevrolet Camaro.  (Read More…)

By on December 11, 2018

Once upon a time, your transportation options upon touching down at a U.S. airport involved hailing a taxi, renting a car, or taking a shuttle to your hotel. Those options still exist, but business travellers and tourists can now waltz out the door and into a number of app-based ride-hailing services and a growing list, depending on location, of short-term, app-based car rental services that don’t carry any of the usual names seen at the rental line.

Hertz clearly felt that omitting a couple of minutes from the rental counter-to-destination trip might help it stay ahead of those pesky mobility upstarts. Enter the magic of biometrics. (Read More…)

By on October 22, 2018

Car rentals have evolved rather dramatically in the new millennium. While you can still reserve over the phone before walking into an office to pick up the manager’s special for the agreed upon timeframe, alternatives are many. ZipCar transformed how some people get around an urban environment by allowing customers access to an array of automobiles at hourly rates. Seeing its potential, Avis acquired the company in 2013, expanding its function to include a less stringent return policy via ZipCar Flex.

Meanwhile, Enterprise has its own short-term rental services. Recently, the company has been on a kick to purchase as many mobility firms as it can. Hertz, which has been a little slower to dive into mobility culture, does offer alternatives to traditional rentals in specific markets. It also announced a new strategic partnership with the tech firm Aptiv last July to start testing autonomous fleets this fall.

This, of course, is all taking place in an era where carmakers are launching fleets of their own while attempting to rebrand themselves as data and mobility companies. But surely these rental agencies are just hedging their bets and trying to adopt new tech to better serve their customers. They’re not about to adopt the same tired rhetoric, are they?   (Read More…)

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