Hertz announced on its official website that it has filed for bankruptcy protection in the United States and Canada. Hertz has also secured $1 Billion to keep the company operating. Car rental companies do have a huge amount of “fixed” assets on hand, and if those cars are not being rented out, how can they repay their bank loans? Still, it is a bit surprising that before some smaller companies went bankrupt, Hertz was the one that could not hold on first. It was probably already overexpanded even before the pandemic. The good news is that existing reservations, promotions, and loyalty programs will continue for now.
All reservations, promotional offers, vouchers, and customer and loyalty programs, including rewards points, are expected to continue as usual
However, it is said that points can only be used to book cars and cannot be transferred to other mileage programs.
Reportedly, aside from the United States and Canada, Hertz operations in other regions — including Hertz in mainland China, which partners with CAR Inc. — have not been affected.