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Hertz files for Chapter 11 bankruptcy

Discussion in 'Auto News & Rumors' started by rmtodd, May 23, 2020.

  1. rmtodd

    rmtodd Well-Known Member

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    This probably isn't a huge surprise, but their proposal to sell 180,000+ cars by the end of the year doesn't speak well of their industry. Even before the airline business collapsed, they were losing a ton of business to rideshare companies like Uber, but those companies are also losing a ton of money.

    Hertz files for U.S. bankruptcy protection as car rentals evaporate in pandemic (at https://www.reuters.com/article/us-hertzglohldg-bankruptcy/hertz-files-for-us-bankruptcy-protection-as-car-rentals-evaporate-in-pandemic-idUSKBN22Z03W )
     
  2. voiceofstl

    voiceofstl Well-Known Member

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    I hear that Hertz rents hot cars like chargers and challengers RTs
     
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  3. Tony K

    Tony K Active Member

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    Yes, and in some unusual places. I noticed one could rent a Challenger Scat Pack in Zurich, Switzerland last year or two.
     
  4. 06PTElectricBlue

    06PTElectricBlue Active Member

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    Just one of the latest companies to go under due to the virus ;)

    HERTZ started in 1918 (the same year that my dad was born) with 12 Model T's

    [​IMG]

    That would have been cool to rent one of these back in the day :cool:

    [​IMG]

    [​IMG]
     
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  5. KrisW

    KrisW Well-Known Member

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    Switzerland is a surprisingly popular market for American cars. It's also the European market with the highest take-rate for automatic transmissions. These two may be related.

    This Chapter 11 request applies only to the US business. Other Hertz subsidiaries are continuing to trade.
     
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  6. Tony K

    Tony K Active Member

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    Apparently, so is Ukraine. I noted that when I was being driven through western Lviv in March 2018, that there were several dealerships on the outskirts of town in new (I mean not more than a few years old - if that - "new") facilities. I think Jeep and Caddy in particular.
     
  7. AmbassadorSST

    AmbassadorSST Active Member

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    They have 1 Billion in cash reserves, which allows them to run normally, but 19 Billion in debt. Yikes! :eek:
     
  8. jimboy

    jimboy Well-Known Member

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    We will see much more of this, I'm afraid. Far too many companies carry too much debt and too little reserve cash, most have forgotten the hard lessons of the 30's, and bought into the 'maximized shareholder value' kool-aid.
     
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  9. Panterasr9

    Panterasr9 Active Member

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    Hopefully everyone learns from this 1. We need to build and make things here not rely on China for anything. 2. Stop living paycheck to paycheck and buy things you can afford. This includes giant companies too. I'm not saying I dont feel bad for the employees just that I hope people learn from this is all.
     
  10. Dave Z

    Dave Z It's me, Dave
    Staff Member Level III Supporter

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    I think it would be a mistake to believe we will learn from this. Especially with the Fed buying up loads of junk bonds.
     
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  11. Panterasr9

    Panterasr9 Active Member

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    We can only hope , the founders would roll over if they saw the size and bloatedness of our government. I digress hopefully Hertz can pull through.
     
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  12. 77 Monaco Brougham

    77 Monaco Brougham Well-Known Member

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    If The Founders were alive to see what's happened to the country they helped create...It would kill them:p:D
     
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  13. 06PTElectricBlue

    06PTElectricBlue Active Member

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    It was probably wishful thinking. ;)

    One of the problems is, and this includes the people from the top down in our country, is that there is no willingness to work together and take care of each other.

    Everybody is just concerned with what is best for them and what is in their best interest, too much individualism. ;)

    I don't subscribe to any political party, and I would like to think that whatever person is our leader, regardless of their party affiliation, that they would, and all those below them, be working for what is in the best interest for everyone in our country, as they were elected to represent all the people, all the time. :)

    But now that I've said that, that too is probably wishful thinking :D
     
    #13 06PTElectricBlue, May 25, 2020
    Last edited: May 25, 2020
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  14. Dave Z

    Dave Z It's me, Dave
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    I must disagree with that.

    I think there are many examples of politicians and people wanting to work together and put aside political differences. There are some governors from both parties working hard to do just that. There are some party leaders doing the exact opposite, but it's not exclusively dog-eat-dog. I might also point out that until this crisis, there has rarely been a question (at the federal level) of “that state is run by a different party so I refuse to help them out.” The closest we came before was Bob Corker and his import-automaker-state cronies not wanting to help GM, and a brief fight over Sandy relief (nothing like Southeastern “hurricane zone” state senators whining that New Jersey and New York residents “shouldn’t have lived in the path of the storm.”) But until then, and even then, if a hurricane hit a Democratic state, Republicans helped. If a hurricane hit a Republican state, Democrats helped.

    I'd say more but there's an invisible line...
     
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  15. 06PTElectricBlue

    06PTElectricBlue Active Member

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    I'll agree with some of what you bring up :)

    I was kind of relating my statements to the present situation, things were much different in the past ;)
     
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  16. tomit

    tomit Well-Known Member

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  17. Dave Z

    Dave Z It's me, Dave
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    jimboy, Jimmie S, aldo90731 and 4 others like this.
  18. Dave Z

    Dave Z It's me, Dave
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    I still think that it is overgeneralizing. I see this behavior from the majority of one party and a small, over-publicized minority of the other.
     
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  19. patfromigh

    patfromigh Well-Known Member

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    I was working for a rental car fleet, but that business is now in a coma. My son is higher up the corporate ladder at Brand X and still is working there while I'm on standby. So, I'm privy to the industry gossip. Hertz is number one in customer satisfaction according to JD Powers. The company which I had worked for doesn't chase the numbers like Hertz does. Our company aims to make the customer happy, but that also means not chasing outside survey indexes. We have our own internal quality audits and much of this is based on Dr. Deming's 14 points. The employees are very empowered and I have done things for customers which would have gotten me fired anywhere else.

    How does a company sacrifice the coveted Number #1 in Customer Satisfaction so they can make the customer happy? We at Brand X have outlets everywhere, which means serving poorer and blighted neighborhoods. Lower socio-economic groups still have accidents like everyone else and probably have more frequent and severe breakdowns than the more affluent members of society. Having outlets in blighted neighborhoods means putting up with graffiti and vandalism, and such appearance lowers the numbers. But, we still have to be where people have a need to rent a car or truck.
     
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  20. Bob Lincoln

    Bob Lincoln "CHECK FAULT CODES"
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    I won't miss Hertz. I wasn't happy with them in 1986 when they had two restrictions on a rental in CO:
    1) Can't drive it out of state.
    2) 700 free miles, and 20 cents per mile after. I drove 1200 miles that week, cost me an extra $100, which was about 40% more.

    They also own Dollar and Thrifty, and we had an unsatisfactory experience with them last summer. Problems with the car; directing me to a center that had been demolished and replaced several years earlier; directing me then to an unmanned, unlocked center; and $700 for a week for a Subaru Outback, when the base rental is $400, is ridiculous. I know part of that was state fees, but still unacceptable.
     

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