Hertz Global Holdings Inc. has filed Chapter 11, with plans to halt its purchase of new cars and light trucks for the foreseeable future, a move that will contribute to the sharp decline in the American market this year.
One uncertainty is how the bankruptcy filing will impact the used-car market. By slashing new car orders, Hertz could reduce the amount of near-new products flowing back onto dealer lots in the year or so ahead.
“Hertz has over a century of industry leadership and we entered 2020 with strong revenue and earnings momentum,” Hertz President and CEO Paul Stone said in the company’s statement. “With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery.”
All of Hertz’s businesses in the U.S. and abroad, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, remain open and serving customers.
Read the article at The Detroit Bureau.