The news of the bankruptcy declared in the United States and Canada by Hertz in the past few days, it has affected the entire automotive sector a little. The American giant in the car rental sector had never done so in over 100 years of existence, and it was the impact of the spread of Coronavirus that gave the coup de grace to a company that already had nearly 20 billion in debt.
Hertz fails but pays 16 million bonuses to executives
Recall that Hertz has activated the procedure Chapter 11, which Chrysler and General Motors had already clung to in the past and which concerns a sort of temporary bankruptcy: it is in fact the beginning of a restructuring plan, which only in the event of a negative outcome leads to liquidation. At the moment, therefore, the company will end up under the control of the court, with the possibility of reorganizing itself and trying to raise its head from this failure. Not all Hertz branches, however, will be involved in this procedure: the American company has made it known that in Europe (therefore also in Italy), Australia and New Zealand, the activities of the licensees will not be included and will proceed regularly with the activities. Therefore, the full operation of these branches remains in force, from rentals to reservations via offers and reception and loyalty programs.
Hertz, bankruptcy after over 100 years of history
“The agencies they are open to welcome our Guests with the usual level of service that has distinguished Hertz for 102 years “, Hertz writes in an official note. The company has decided to adopt new measures and procedures with high and renewed comfort standards, safety and sanitation, to guarantee all customers the possibility of using the car as a safer means of transport.