How to Save Hertz– And Avis, Rent-A -Car Industry & Even Dealerships

SITUATION:
Hertz is really hurting. Stock sale didn’t work.
Struggling to get a bankruptcy loan.
Top lenders and hedge funds are knocking at the door, looking for the their money.
Corporate Bond prices sinking

SIGNIFICANCE:

The business community and car rental industry observers, consultants, and trade publishers are aghast that the leading car rental company in the World is in trouble and about to go out of business.
No one ever saw this as a possibility. No one seems to know what to do now.
Meantime, high powered law firm like White & Case are rushing to the rescue at $1,600 per hour.
Hertz is seeking a bankruptcy loan of over $1B.

SOLUTION:
The solution to the Hertz and the car rental industry problems and survival may not be with lawyering or even high end bond & debt financing.
Here are 5 Action-ables the Hertz’ management might consider:

  1. Give up being just a car rental agency– become a Total Transportation Management & Service organization tomorrow.
  2. Find a group of car rental, leasing, and service organizations and their consultants who can act on a complete change in business models & strategies
  3. Reorganize and revamp the entire company into a service organization that manages every aspect of operating a vehicle.
  4. Stick with the forced bankruptcy plan and then merge with or sell to a up and coming disruptor like Carvana or even Uber ASAP
  5. Seek to offer commercial, business, and small businesses a vehicle management service not now offered any where – by dealers, RAC. or leasing company,
  6. Capitalize on the multiple locations and operational functions and corporate entities  like a car dealership, a car rental company, a leasing company, & a financial services company – all in one
  7. The time has come to reorganize, reposition, and restructure the corporate framework, strategy, & business models that have confined companies like Hertz to one kind of transportation service — Renting Cars.
  8. Mobilize all of the resources of the automotive industry to provide the funding, services, and support to enable the car rental industry to survive.

STATS: 14,000 of Hertz’s 21,00 employees has been laid off.

SOURCES:  WSJ June 19th “Hertz Seeks Loan After Scrapping Plan to Sell Stock”  https://www.wsj.com/articles/hertz-seeking-bankruptcy-loan-after-suspending-stock-sale-11592502836

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