Before declaring bankruptcy on May 22, rental-car giant Hertz reportedly canceled most new fleet orders as the ongoing coronavirus pandemic hammers business.
Bloomberg reports that Hertz has canceled 90 percent of its new-car orders for the 2020 model year, which will in turn hurt automakers’ fleet sales for the rest of this year.
Rental giant Hertz had been attempting to avoid a bankruptcy in recent weeks, sparked by a significant drop in airline and other travel due to the coronavirus pandemic.
Among the companies that stand to lose business in this domino effect are automakers.
General Motors has been the single biggest supplier for the Hertz fleet of 567,000 vehicles in the United States, with GM models making up 21 percent of its fleet, spanning several brands.
Fiat Chrysler Automobiles (FCA) has been its second biggest supplier, contributing to 18 percent of its domestic fleet.
Ford has been in the third spot, contributing to 12 percent of its fleet, while Kia models have accounted for 10 percent of the fleet.
Toyota, Nissan, and Hyundai vehicles accounted for 9 percent, 7 percent, and 5 percent of the Hertz fleet, respectively.