Hertz’s commitment to electric cars is beginning to pay off, although it is still in its infancy.
That’s for Mark Fields, the company’s interim CEO.
He shared some main points about how the Estero-based car rental giant’s partnership with Tesla is developing in a webcast on the effects after the inventory market closed on Wednesday.
He also discussed the positive facets of Hertz’s new strategic partnerships with Uber and Carvana as it continues to recover, attracting more corporations along Hertz’s path.
Hertz consumers can now lease Teslas in major U. S. markets. Atlanta, Fort Lauderdale, Los Angeles, San Francisco and Washington, D. C.
With the deployment of electric vehicles, control of the company has learned invaluable lessons, which have already begun to become part of Hertz’s popular operating procedures, Fields said.
One of those lessons? On-site visitor education has been shown to be for electric vehicles.
Through its app, Hertz now provides an accelerated booking procedure for its electric fleet, which includes “digitized tips” to inform consumers about cars so they can “get them up and running quickly,” Fields said.
On a similar front, Hertz has moved forward with a strategic partnership that supplies electric cars to Uber drivers. The program has been introduced in more than 30 markets, with results, Fields said.
“We’re seeing a lot of interest from drivers and drivers are generating higher revenues,” he said.
In October, Hertz announced it would first order 100,000 Teslas by the end of 2022 and charge thousands of its own charging stations to its global network.
Talks are underway with other automakers that could incorporate new models into Hertz’s electric fleet, Fields said, without naming names.
Hertz now has more than 700 charging stations in 65 markets worldwide and is accelerating the addition of more complex stations that can rate cars in minutes.
A third-component partnership, with a generation company, is also reaping fruit for Hertz, as a component of its new strategy, after a successful restructuring.
The company began promoting its retirement cars directly to consumers through Carvana, an online-only used car retailer. With several thousand used rental cars now for sale on Carvana’s platform, they “turn into sales,” exceeding initial expectations, Fields said.
The strategic alliances, all announced in October, are part of the company’s broader efforts to position itself at the “center of the fashion mobility ecosystem. “
Earlier this month, Hertz announced a new partnership in line with its new mission. The company invested in UFODRIVE, a self-service electric vehicle rental company and a mobility service provider in Europe.
All of the partnerships are designed to build Hertz’s earning capacity, but his good fortune depends on having the “other right people in the right position at the right time,” Fields said.
Given the tight, hard work market and record quit rates affecting employers across the country, Hertz continues to refine its hiring and retention practices, adding market analysis to ensure local pay rates remain competitive, he said.
In many years, 2021 has been a “year of transformation” for Hertz, Fields said, paving the way for “an exciting path. “
The year included the company’s exit from Chapter 11 bankruptcy in June. A lot has happened since then, from the conversion address to relisting on a primary inventory exchange.
Through structural improvements, Hertz achieved $300 million in annual savings last year, which contributed to monetary functionality in the third and fourth quarters.
In both quarters, Hertz benefited from a rebound following the coronavirus pandemic.
For the fourth quarter, Hertz Global Holdings, parent company of The Hertz Corp. , reported a profit of $1. 9 billion, in line with Wall Street expectations. That 78% more than in the same quarter of 2020, but still 9% less than in the same quarter of 2020. fourth quarter of 2019 before the pandemic hit (excluding Donlen results).
Hertz sold Donlen, a leasing and fleet control company, in bankruptcy.
Reflecting strong demand, vehicle earnings increased 31% in the fourth quarter, compared to 2019, which the company attributes to disciplined fleet control and continued recovery from the sharp drop caused by the pandemic.
Hertz, one of the first victims of the pandemic, filed for bankruptcy in May 2020, resurfacing just over a year later.
In the fourth quarter, Hertz’s adjusted earnings reached a record $426 million, or cents consistent with participation, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $628 million.
Unchanged for one-time costs, however, Hertz lost $260 million, or $1. 52 consistent with stock, the quarter, basically due to fees similar to its post-bankruptcy restructuring.
For the year, the company posted a loss of 27 cents based on percentage before adjustments. Adjusted earnings were $4. 39 based on percentage.
Revenue exceeded $7. 3 billion a year.
“Our 2021 effects were strongly influenced by the demand for recreation in the U. S. “We are in the U. S. ,” Fields said. The uptick in recreation and overseas business has yet to take shape. But we’re ready. “
Looking ahead, business looks strong, he said, at least as far as travelers are concerned, with the negative effects of the Omicron variant of covid-19 in the rearview mirror.
“Consumers are in the mood and it’s smart for our business,” Fields said.
When it comes to regaining market share, he said Hertz’s purpose is no longer to have the largest fleet, but to adapt its fleet to demand.
“Our point of view is to make sure we have a healthy market share, a successful market share,” Fields said.
Today, the company has around 470,900 cars in its fleet. That’s more than about 382,000 last year, but down from more than 686,000 in 2019.
Other adjustments are underway this year, adding a transition to leadership with the hiring of a new CEO. Stephen M. Scherr will take office on Feb. 28.
He last worked at Goldman Sachs as chief financial officer, a position he left expired last year.
He vowed to “transform the company for its current century,” along with other Hertz executives and employees.
Fields, a former CEO of Ford Motor Co. , will serve on Hertz’s board of directors.
Following the announcement of its most recent monetary results, Hertz shares fell on Thursday, but then closed higher at $19. 75, up nearly 15%.
In addition to its eponymous brand, Hertz operates car rental services and Thrifty.
In May 2013, the company announced the relocation of its New Jersey headquarters to Estero, following the acquisition of Dollar Thrifty Automotive Group.
The new multi-million dollar headquarters opened in 2015.