Rental Car Firms Cancel New Vehicle Orders, Struggle To Store Fleet

Rental car firms have begun cancelling new vehicle orders from manufacturers across the US as the coronavirus continues to heavily impact their business operations. Bloomberg reported earlier this week that Hertz Global (NYSE: HTZ), Avis Budget Car (NASDAQ: CAR), and Enterprise Holdings have all either reduced or outright cancelled new orders from vehicle manufacturers.

Automakers have been working with the rental car firms, whom make up to 80% of their overall fleet sales, to redirect or cancel these orders, with some shipments being redirected to their own packed parking lots. General Motors in particular is taking back some of the vehicles it agreed to sell to the car rental firms, while Hyundai and Fiat Chrysler have both said they’ve helped redirect new vehicles to other customers.

The impact is expected to be felt long term as well. All of Hertz, Avis, and Enterprise have called off new vehicle orders for May, June and July with General Motors. Hertz itself has actually cancelled all new vehicle orders for the year as it deals with its creditors to keep the lights on at its operation.

While new vehicle sales continue to be halted for rental agencies, these agencies are also dealing with a larger problem – where to store all current inventory. ZeroHedge reported this morning that numerous stadiums across America are now seeing their parking lots filled to the brim with that of rental vehicles as airport parking lots have met their capacity.

Aloha Stadium is filled with rental cars. Source: ZeroHedge

Information for this briefing was found via Bloomberg and ZeroHedge. The author has no securities or affiliations with any of the mentioned securities. 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

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

New York Governor Warns Post-Pandemic Economy May Remain Stagnant for Some Time

New York Governor Andrew Cuomo has a grim forecast for the state’s post-pandemic economy. At...

Wednesday, May 27, 2020, 12:25:00 PM

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

Snapshot in Charts: An Economic Collapse?

Hey Now! As a little Friday activity I thought I would go though some of...

Friday, April 3, 2020, 01:22:58 PM

WHO Warns Coronavirus Outbreaks Have Not Reached Peak in Americas Yet

As the number of coronavirus cases reaches 10 million worldwide, the World Health Organization (WHO)...

Thursday, June 25, 2020, 08:04:00 PM

Internet Of Things Books First Purchase Order For ThermalPass, Over 100 Inquiries Received On Product

Internet of Things Inc (TSXV: ITT) this morning released to the market that it has...

Tuesday, June 23, 2020, 09:14:52 AM