As Hertz Global Holdings Inc. works to stay out of bankruptcy, the company has canceled 90 percent 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. That signaled the company’s management doesn’t expecting a quick rebound in demand for rental cars over the next 12 months.
“The coronavirus created a major disruption as the global travel market and the used-car market effectively shut down,” Marinello said. “We have to be pragmatic about the timing of an economic rebound including a second wave of the virus in the fall. So we are focused on safeguarding liquidity.”
Hertz has traditionally been a leading buyer of fleet cars from the Detroit 3 and other…