The nation's rental car companies are in deep trouble. And that's another blow for the already struggling auto industry.
During normal times rental car companies account for 10% or more of US new car sales -- an estimated 1.7 million to 1.9 million cars purchases last year. But these are not normal times. Far from it.But rental car companies get two-thirds of their revenue from airport locations. With flying down 94% in April and May, according to data of people passing through TSA checkpoints, there are far fewer people needing to rent cars.
He said it's tough to know how deep the cuts will be.Hertz said it has sold 41,000 cars from its US fleet and another 13,000 cars in Europe in early March, but that the halting of used car auctions and closure of many used and new car dealerships essentially brought sales to a halt. The difficulty in continuing to sell cars is one of the reasons it cited as the cause of its bankruptcy filing. Avis Budget said it already cut its US fleet by 35,000 in the first half of March.
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