Tag: Hertz

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…)

By on August 15, 2018

While the process of renting a car is frequently obnoxious, the actual vehicles are incredible. Assuming you get damage protection, you can basically do whatever you want to them. These vehicles are the prostitutes of the automotive world, willing to engage in activities too explicit for the model that currently lives in your garage. The only limitations are dictated by your own twisted imagination and how much you’re willing to spend.

That bar for vehicular perversion just got a little higher over at Hertz, which is celebrating 100 years in the car rental business. The company is offering a special edition Chevrolet Corvette Z06 to customers in select cities. Fortunately, you probably live near one and will be able to take the custom Vette to an abandoned parking lot in the middle of the night and absolutely destroy its rear tires or drive it over a poorly maintained road a little faster than you should.  (Read More…)

By on June 12, 2017

2016 Chevrolet Cruze Grille logo, Image: General Motors

General Motors has decided to further shrink its outgoing fleet of rental vehicles to prioritize its in-house vehicle lending service, Maven, and focus on getting newer cars to customers. That does mean building fewer vehicles overall, but GM shouldn’t care if it can keep raking in the profits — something rental fleets aren’t particularly good at in lower volumes, unless you’re the one charging a daily rate.

Alan Batey, president of GM’s North American operations, claims sales to rental fleets should drop by about 50,000 units this year and an undisclosed amount in 2018. It follows the company’s trend to scale back fleet sales in general. Big businesses accounted for 16.1 percent of its total U.S. sales in 2014, but that was reduced to 11.7 percent in 2016.  (Read More…)

By on March 21, 2016

Lotus Elise At Hertz

It’s the triumphant return of Ask Jack, the question-and-answer series that has proven to be significantly less popular than Ask Bark. Today’s question comes from several commenters on the Malibu LTZ Review, and it can be summed up like this:

If you’re only driving 500 miles or so during the weekend, why would you rent a car instead of taking your Accord/911/Boxster/Neon/Tahoe/Fiesta/motorcycles/bicycles/Uber/Southwest/Car2G?

I’m glad you asked. Really, I am. ‘Cause otherwise, today’s column would have been a long snd slightly sorrowful re-telling of a time I accidentally let my S5 roll downhill into a concrete parking block because I had both of my hands between some young mother’s legs in the passenger seat and my foot slipped off the brake when I leaned all the way over towards her.

(Read More…)

By on August 7, 2014

rental-car-signs

2014 has been a good year for the rental car industry. A recovering economy has meant more car rentals and more miles traveled by consumers. Volume alone isn’t responsible for the rental companies’ recent success, though. Each of the big three rental chains has been able to raise prices, thanks to the consolidation of an industry that they now collectively control 98% of.

(Read More…)

By on October 4, 2013

hertz4

“Would you like the damage waiver for just $30.99 per day?”

“Absolutely.”

(Read More…)

By on July 9, 2013

Hertz-Penske-2

 

See this Mustang up above? This is the Hertz Penske Mustang. While every other blog is going to talk about how awesome it is that it harkens back to the Shelby GT350H and how cool it would be to track one, we have every intention of doing so.

(Read More…)

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