Hertz Global Holdings Inc (HTZ)

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GM is working with Hertz to get more borrowed cars amid chip shortage

September 20, 2021 by admindigi

General Motors has signed an agreement with car rental giant Hertz to help turn more borrowed vehicles into dealerships amid a global shortage of microchips.

As an enhancement to GM’s existing dealer courtesy transportation program, Hertz will make loaned vehicles available to dealers at the automaker’s current price, a GM spokesperson confirmed to Car News. Hertz’s primary focus is providing Chevrolet Bolt customers with lenders during the redemption process.

AutoForecast Solutions estimates that the global industry has lost 8.36 million vehicles from planned production due to a lack of chips. About 2.7 million of these vehicles were cut from production plans in North America.

General Motors this month doubled its production loss forecast to 200,000 vehicles in the second half of the year. The automaker continues to pause production at its assembly plants, especially those that build crossovers and sedans, to redirect the chips elsewhere, and has built some vehicles without certain units.

Hertz has locations in all 50 states, and Washington, D.C. rental car companies, like dealerships, have struggled to get stock during the chip crisis. But direct access and GM’s price through Hertz will give merchants another channel to secure lenders. A GM spokesperson said the Hertz loaned vehicles depend on local market availability

https://digichat.info/gm-is-working-with-hertz-to-get-more-borrowed-cars-amid-chip-shortage/