Car rental brands include Dollar and Thrifty — she was left without any income due to the paralysis of travel due to the coronavirus, and in April she began to stop making payments. Hertz has also had administrative difficulties, and on May 18 he named his fourth CEO in six years.
“No business is made to capture zero revenue,” former CEO Kathryn Marinello said during a conference call on May 12, referring to the company’s first-quarter cash inflows. “Company reserves can hold them only for a certain time.”
In late March, Hertz laid off 12,000 workers, licensed another 4,000, cut vehicle purchases by 90%, and canceled all non-essential expenses. The company said it would save $ 2.5 billion a year with these measures.
However, the cuts were adopted too late to save Hertz, the second largest car rental company in the country. It was founded in 1918 by Walter L. Jacobs, who started in Chicago with a fleet of a dozen Ford T-models. Jacobs sold the company, initially called Rent-A-Car Inc., to John D. Hertz in 1923.
In a note to investors in late April, Jefferies analyst Hamzah Mazari predicted that rival company Avis would survive the coronavirus crisis, and that Hertz had only a 50% chance “because it was slower in the decline of costs ”.
On May 18, Hertz appointed Paul Stone, then COO, as CEO, and announced that Marinello would be leaving the position and leaving the company’s board of directors.
Krisher reported from Detroit.