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Hertz Cancels New-Car Orders as Pandemic Shuts Down Travel

  • Rental-car company takes measures to stay out of bankruptcy
  • Earnings call lasts roughly 20 minutes, no questions are taken
    
Photographer: David Paul Morris/Bloomberg
Updated on

As Hertz Global Holdings Inc. works to stay out of bankruptcy, the company has canceled 90% of its new-car purchases for the 2020 model year, a move likely to further depress fleet sales by major automakers.

Chief Executive Officer Kathy Marinello revealed the cost-cutting move in a 20-minute conference call Tuesday, one day after the company reported a larger-than-expected first-quarter net loss and said it may have difficulty continuing as a going concern. This signaled that the company’s management doesn’t expect a quick recovery in demand for rental cars over the next 12 months.