Monday, October 6, 2025

Latest

Hertz Forced to Cancel New Vehicle Orders Amid Travel Industry Collapse

As the coronavirus continues to drastically curtail global and domestic travel, there are several industries which have found themselves in a great deal of financial trouble as a result. Both the auto manufacturing and car rental industries have been struggling to stay afloat during these unprecedented times, but it seems that they are being hit with one blow after the other.

Car rental company Hertz Global (NYSE: HTZ) has run into some serious financial trouble due to a significant decline in rental-car demand, and is currently in the midst of negotiations with its senior lenders as a move to temporarily defer a potential bankruptcy filing. However, in a recent conference call, CEO Kathy Marinello revealed that Hertz is in much deeper trouble than previously anticipated. Due to a first quarter net loss which ended up being much bigger than predicted, the car rental company is now resorting to a cancellation of 90% of its 2020 model year new vehicles.

Such a drastic move suggests Hertz is not anticipating that rental car demand will recover anytime soon, but it’s not the only company implementing such a move. Enterprise Holdings and Avis Budget Car (NASDAQ: CAR) have also recently announced they will be reducing and/or cancelling new vehicle orders from car manufacturers. This in turn puts American automakers in a very tough spot.

Since rental car companies account for approximately 10% of total US auto sales per year, car makers such as Ford, General Motors, and Fiat Chrysler are soon going to find themselves swamped with an oversupply of new vehicles with no new owners. However, some car manufacturers including General Motors have agreed to take back a portion of new vehicles slated for rental car companies, as a move to alleviate some of the challenges resulting from the coronavirus pandemic.

Information for this briefing was found via Bloomberg and the Detroit Free Press. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

US Federal Reserve Now Owns Defaulted Hertz Bonds

Given the drastic economic downturn in the travel and hospitality industry, car rental company Hertz...

Tuesday, May 26, 2020, 06:48:00 PM

Bankrupt Hertz Stock Continues to Attract Frenzy of Retail Investors

For those of us still puzzled about last week’s trading fiasco regarding the infamous car...

Tuesday, June 9, 2020, 11:36:31 AM

Jim Cramer Suggests Wall Street Professionals Using Poor Performing Stocks To Bait Robinhood Traders

Jim Cramer, the host of CNBC’s Mad Money has provided some much-needed insight into the...

Sunday, June 14, 2020, 01:55:00 PM

Hertz Global Files for Nasdaq Listing After Emerging From Bankruptcy

Car rental company Hertz Global is making its public debut — again. The company, which...

Tuesday, October 19, 2021, 11:31:00 AM

Car Rental Company Hertz Preparing for Bankruptcy Filing

As the rapid spread of the coronavirus resulted in economic lockdowns and stay-at-home orders, many...

Thursday, April 30, 2020, 10:00:00 AM