Article

2020-05-08 Economy

Automakers In Chaos As Broke Rental Car Companies Stop Placing Orders For Vehicles

[Zero] Recall, it was just weeks ago that we pointed out how a crash in used car prices could be putting significant pressure on the rental car industry. That is, obviously, in addition to the fact that nobody is traveling.

Since then, it has been rumored that Hertz has hired advisors to consider a bankruptcy and the auto industry has placed a major bet on incentives to try and move inventory off of their lots.

But automakers are about the feel the brunt of the chaos in the rental car industry, as both Hertz and Avis have put stops on purchases and, in some cases, re-directed purchases they've already made to additional parking lots, according to Bloomberg.

This has left GM and Hyundai taking back cars that it had agreed to sell to Hertz, Avis and Enterprise. Last month, Fiat underwent efforts to try and redirect almost 30,000 vehicles these companies had purchased, but was unable to transfer them.

The chaos continued this month when Avis had to sell $500 million in junk bonds and Hertz was granted a last-minute concession from its lenders to narrowly avoid bankruptcy.

Rental car sales fell 77% in April and Fiat was the hardest hit with loss of total fleet sales, according to Cox Automotive.

Posted by Besoeker 2020-05-08 05:24|| || Front Page|| [9 views ] Top

#1 Remember this?

Fire Erupts Near Florida Airport, Destroying or Damaging Over 3,500 Rental Cars

Posted by Skidmark 2020-05-08 10:52|| 2020-05-08 10:52|| Front Page Top

#2 Bet that hertz.

Posted by Skidmark 2020-05-08 11:00|| 2020-05-08 11:00|| Front Page Top

#3 Burning rentals for insurance money could become quite an Enterprise.

Posted by swksvolFF 2020-05-08 17:15|| 2020-05-08 17:15|| Front Page Top

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