Hertz Touts 4Q Results

February 26, 2020

Hertz Global Holdings, Inc. reports an increase in U.S. revenue for both the 4th quarter and full-year 2019.

  • Record U.S. RAC revenue, up 6 percent for the fourth quarter, 7 percent for the full year on pricing and volume;
  • Record global revenue, up 1 percent for the fourth quarter, 3 percent for the full year;
  • Global revenue, excluding Donlen adjustments and fx, increased 5 percent for the fourth quarter and full year;
  • Net loss attributable to Hertz Global was $118 million for the fourth quarter, $58 million for the full year; and
  • Adjusted Corporate EBITDA up 11 percent for the fourth quarter, 50 percent for the full year.

“We have made tremendous progress over the past three years in re-igniting topline growth, driving margin expansion and improving customer satisfaction,” said Kathryn Marinello, Hertz’s chief executive officer.

“Our latest results reflect 10 straight quarters of year-over-year revenue growth and nine consecutive quarters of year-over-year adjusted corporate EBITDA growth.”

DealShield Hits Milestone

February 26, 2020


In January, DealShield’s DS360 issued its 2 millionth guarantee and in December, reached $30 billion in vehicle value guaranteed. Launched nationally in 2014, DS360 Return Guarantee helps dealers reduce reconditioning costs, eliminate costly mistakes, redeploy capital quickly and gain greater confidence in their wholesale purchases by offering a hassle-free return experience. 

The two millionth DS360 guarantee was issued on a 2017 GMC Yukon in dark sapphire metallic blue, bought at Manheim Pennsylvania on Jan. 10. Gary Coppa of Jim Price Chevrolet in Charlottesville, Va., a DS360 client since 2015, made the milestone purchase.

With the DS360 Return Guarantee, dealers can purchase a vehicle at a participating location in-lane or online. If it doesn’t meet their expectations, they can return it to any of the 125 locations within the DealShield Network for a full refund of the vehicle purchase price and buy fee — no arbitration required.


DETROIT – Consultants from McKinsey & Co. recently discussed how various topics within automotive are starting to come together and what this means for the industry. They also discussed a category of “young, used cars” and how they fit in.

Ben Ellencweig and Inga Maurer, both partners at McKinsey & Co., discussed a range of these issues during a January event for the Automotive Press Association here.

Ellencweig said he and Maurer study issues ranging from automotive retail and future mobility to auto financing and used cars.

“It feels like everything is converging these days,” Ellencweig said.

Maurer said she and Ellencweig are also part of a roughly 150-person group at the McKinsey Center for Future Mobility. The group is looking at the entire ecosystem – everything from online classified to how to service a car or maintain a customer.

Ellencweig, quoting Bill Gates, said people are always overestimating what they will happen in the next year, but underestimate what will happen in the next decade.

Global trends, ranging from urbanization to regulatory actions and trade wars all will have an effect on the automotive industry.

“Disruption is not only technology, but it’s also the consumer,” he said. “We’re used to consuming things quickly in a convenient way 24/7. Why not automotive?”

One topic the pair discussed was the new reality of “premium.”

A study of the question of “premium” showed that premium used to be defined by price, while it has evolved over the past decade to mean “content.”

But Ellencweig said premium will mean something different to different people. A premium consumer wants to be treated differently when they buy a car, finance a car and how they are serviced.

Several things will define and shape “premium” in the future. One, the rise of China, which will help determine how things will evolve. Another factor is that premium consumers are leading the charge. They start their journey online and more are willing to buy online.

A third factor is connectivity from exterior focus to the rise of interior focus, Ellencweig said.

On the environmental side of things, there will be a difference of need based on geography. In China, the idea of air purification systems in the vehicle is “almost a must-have,” he said.

Another factor revolves around “brand,” and does “brand” matter.

“The quick answer is ‘yes,’ but now it’s expanding,” Ellencweig said.

The standard definition of “used” has changed, as well.

In the distant past, customers might go to a “shiny” new-car dealership, while the used-car buyer might go to a “dirt lot,” Ellencweig said.

“Now we’re seeing a third type: the young, used cars,” he said.

Many used-cars on the road are not the typical used-cars of the past. Many of them are one- to three-year- old off-lease cars.

“We estimate that by 2022,” Ellencweig said I said, “60 percent of the used-cars coming into the market will be thee-years and younger.”

These are higher-priced, higher-contented used cars.

McKinsey has segmented out the five types of used-car segments and they include bargain buyers, which Ellencweig said I considers the typical classic used-car buyers.

A new segment of used-car buyers is the “tech-oriented achievers,” which make up 29 percent of the market.

Other segments include no-haggle retailers, high-flying fighters and negotiators.

On the wholesale side. Maurer said the younger used cars work well for a digital auction rather than a traditional auction.

She said franchise dealers have extreme challenges, the main one which is traying to be profitable, “no matter how much money you put on the hood.” Because of this, service and back-end money will be critical to a franchise dealer’s success.

In the U.S., the features that matter are the ownership experience, the performance and interior functionality, he said. In Europe and China, the importance of the powertrain is a big issue. In Europe its important based on sustainability and in China is driven by regulation.

Premium customers in the U.S. are less brand loyal than mass market customers.

“I think it is a real challenge for brands, real automotive iconic brands,” Ellencweig said. The challenge is that they haven’t been able to create a consistent online/offline experience.

Premium customers also prefer online price aggregators and maintenance alerts from the onboard systems. Hey also feel the importance of software selection and updates.

Other important features include online smart features for smart roads and traffic services, integration with smart phones and media subscription services.



DigitalMotors, an automotive retail and financial technology (FinTech) firm, has partnered with Autotech Ventures to accelerate its growth strategy. The company’s configurable online store technology can be integrated with the websites, systems, and processes of any dealership, manufacturer, auto lender, or marketing site to power a state-of-the-art car buying and financing experience – tailored to individual clients’ business needs and corporate identity.

Based in Silicon Valley, Autotech Ventures is a venture capital firm managing more than $270 million that focuses on the $3 trillion ground transportation industry. Digital Motors operates a digital retailing platform and intelligent FinTech configuration engine, enabling car dealerships to fully transact with their customers online. Car shoppers can complete the entire transaction online or seamlessly transition to the dealership at any step in the process.

ShipYourCarNow, an automotive transportation, technology and service provider, has partnered with E-Dealer Direct, an online used car auction focused on front line units from a variety of sellers.

El Paso based E-Dealer Direct provides an auction marketplace that makes it easy for buyers and sellers to control the sale through preferences, proxy bidding and counter bidding features. With ShipYourCarNow integration, shipping solutions are also embedded within the auction site, providing more value to dealers.

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