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Hertz is Hurting...Bring back Platinum purchase program?

Hertz is Hurting...Bring back Platinum purchase program?

Old May 13, 20, 5:47 pm
  #1  
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Hertz is Hurting...Bring back Platinum purchase program?

Anyone think they’ll revive the buy Platinum for x dollars program since Hertz seems to need money badly?
also, if one is renting from a particular HLE a lot, can they make a referral or is it strictly on a corporate contract basis
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Old May 13, 20, 8:26 pm
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Even if they brought the Platinum purchase program back, we would think most folks would be very hesitant to take advantage of it given Hertz's own admission that they have a "substantial doubt" about continuing as a "going concern". We certainly would advise against making a major commitment to Hertz until they can (hopefully) shore up their financial situation.
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Old May 14, 20, 6:00 am
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Originally Posted by AutoSlash View Post
Even if they brought the Platinum purchase program back, we would think most folks would be very hesitant to take advantage of it given Hertz's own admission that they have a "substantial doubt" about continuing as a "going concern". We certainly would advise against making a major commitment to Hertz until they can (hopefully) shore up their financial situation.
It's hard to imagine Hertz going chaper 7. They've innovated a lot in the last few years though the core problems never went away. Do you think one of their competitors would have the resources and interest to buy them?
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Old May 14, 20, 6:40 am
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Originally Posted by m907 View Post
It's hard to imagine Hertz going chaper 7. They've innovated a lot in the last few years though the core problems never went away. Do you think one of their competitors would have the resources and interest to buy them?
It is unlikely that that would go chapter 7 but highly possible that they go through a chapter 11 reorganization given the rather dire situation they find themselves in. At that point, all bets are off. While I agree that it would be unlikely that they would not honor customer commitments in that scenario (like Platinum status recently purchased), nothing would be off-the-table at that point. Would you really want to pay $1K+ to find out?

Also, keep in mind that they could also keep the Platinum program but neuter it in a may that makes it much less valuable. For example, they could do away with terminal pickup and drivebacks. They've just laid off a massive amount of their staff. For the foreseeable future, they are going to be operating with a skeleton crew. That doesn't leave any extra personnel available for these sorts of activities that cater to less than 1% of their customer base. Just sayin.
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Old May 14, 20, 7:45 am
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Ask yourself why you would invest in Hertz if the market will not.and you answer your own question.

At best, you have spent $1K+ for what may be not much of a benefit anyway. At worst, you lose the entire amount with the possibility that somebody else -- not you -- decides whether and in what form Hertz survives and whether to honor customer service commitments as a means of building whatever the brand might be.
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Old May 14, 20, 9:44 am
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Hertz has suspended platinum benefits in some cities (no airport pickup or driveback) due to "labor shortages"

Hertz has also suspended new car purchases, so they won't have nearly as steady flow of new platinum vehicles in their fleet.
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Old May 15, 20, 3:38 am
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Originally Posted by AutoSlash View Post
It is unlikely that that would go chapter 7 but highly possible that they go through a chapter 11 reorganization given the rather dire situation they find themselves in. At that point, all bets are off. While I agree that it would be unlikely that they would not honor customer commitments in that scenario (like Platinum status recently purchased), nothing would be off-the-table at that point. Would you really want to pay $1K+ to find out?

Also, keep in mind that they could also keep the Platinum program but neuter it in a may that makes it much less valuable. For example, they could do away with terminal pickup and drivebacks. They've just laid off a massive amount of their staff. For the foreseeable future, they are going to be operating with a skeleton crew. That doesn't leave any extra personnel available for these sorts of activities that cater to less than 1% of their customer base. Just sayin.
To be clear, I have no interest in buying Platinum status, I'm just thinking about the future of the company.

Originally Posted by AutoSlash View Post
Btw, there are only two competitors who could even think about buying them and that's Avis Budget (ABG) and Enterprise Holdings (EHI) but there is almost no value in doing so. What Hertz has is almost 100% duplicative with what EHI has already (major airport concessions and a wide array of off-airport locations). The story is largely the same for ABG, but Hertz does have more penetration than them in the off-airport segment. That said, taking on Hertz's truly staggering amount of debt to get a bunch of new off-airport locations would be foolhardy. They could more easily just pick through the assets in liquidation or spend the money more wisely ramping up their own local locations. ABG also is facing their own liquidity problems, and is hardly in a position to be bidding on Hertz with mountains of debt.

Even if any of this were possible, it would immediately raise antitrust concerns related to going from 3 major competitors to 2 in the industry.
Would Sixt have the resources to acquire a bankrupt Hertz?
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