Rental cars are stored in a parking lot at a stadium in Los Angeles.
The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.
This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.
Rental Companies Buy Up Used Cars as Chip Crisis Get Worse
Bloomberg 4 hrs ago David Welch
(Bloomberg) The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.
Popular Searches
This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.
Rental car agencies rush to build back fleets by buying used cars Autoblog 5/3/2021 Bloomberg
Rental cars stored on the parking lot of Dodger Stadium in May 2020 in Los Angeles. They were sold off as the pandemic hurt the travel industry. (AP)
The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.
This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.
Australia)
Global Car Rental Insurance Market Report offers a detailed overview of this market and discusses the dominant factors affecting the growth of the market. The impact of Porter s five armies on the market over the next few years has been discussed for a long time in this study. We will also forecast global market size and market outlook over the next few years.
Types of Products, Applications and Global Car Rental Insurance Market Report Geographical Scope taken as the Main Parameter for Market Analysis. This Research Report Conducts an assessment of the industry chain supporting this market. It also provides accurate information on various aspects of this market, such as production capacity, available production capacity utilization, industrial policies affecting the manufacturing chain and market growth.
Then came a competing offer at the 11th hour, just as Hertz sought court approval to move ahead with its chosen sponsors.
Now, Hertz will conduct another round of bidding to give the competing group a full and fair opportunity to present their best proposal, according to court documents.
If necessary, the current plan sponsors would have the opportunity to counter the other proposal at an auction.
If there s an auction, it s to be held May 10 in a virtual room, under the supervision of Hertz s attorneys.
Hertz bidding process laid out
In court documents, Hertz said the new process is designed to ensure that it chooses the reorganization plan that s in the best interests of the company and its creditors and equity holders as a whole.