Sales and Marketing – GreatOldTrucks.com

Hertz Buying 100,000 Tesla Vehicles for Rental Fleet, Brady Endorsement

<img data-attachment-id=”1777054″ data-permalink=”https://www.thetruthaboutcars.com/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement/hertz-tom-brady-product-whore/” data-orig-file=”https://www.thetruthaboutcars.com/wp-content/uploads/2021/10/hertz-tom-brady-product-whore.jpg” data-orig-size=”2700,1800″ data-comments-opened=”1″ data-image-meta=”{“aperture”:”0″,”credit”:””,”camera”:””,”caption”:””,”created_timestamp”:”0″,”copyright”:”2021 Getty Images”,”focal_length”:”0″,”iso”:”0″,”shutter_speed”:”0″,”title”:””,”orientation”:”0″}” data-image-title=”hertz tom brady product whore” data-image-description=”

Hertz

After managing to avoid what appeared to be certain death, Hertz has decided to purchase 100,000 Tesla vehicles before the end of 2022. Considering the firm was filling out Chapter 11 bankruptcy forms this time last year, the estimated $4.2 billion expenditure designed to ensure that 20 percent of its global fleet is electric does feel slightly frivolous. But Hertz says it’s getting out ahead of the curve and is interested in becoming a “mobility company,” rather than a business that just rents people automobiles.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said interim CEO Mark Fields. “The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.”

Fields joined Hertz in June, becoming CEO this October, and previously led the Ford Motor Co. from 2014 to 2017 — where he focused on transforming the automaker into a technology-focused firm. While the term itself is the Lorem Ipsum of empty industry jargon, claiming your business was going to evolve into a “mobility company” was popularized by Fields as he tried to pivot Ford toward becoming data-driven and more interested in electrification.

However, he received the boot from Blue Oval after an internal power struggle with Joe Hinrichs and took the blame for the manufacturer’s declining sales and lackluster stock performance. While we can debate whether Fields became a sacrificial lamb for angry investors or if his ideas were actually any good, Ford ultimately stayed on the pathways he laid out.

Hertz said it will begin adding Tesla products to its fleet in November. But the full 100,000 units don’t have to be purchased until the end of 2022 due to logistical worries (the chip shortage was mentioned) and making sure locations are set up to charge vehicles when not in use. Tesla renters will reportedly be given preferential treatment and subjected to a reeducation program about the merits of EVs.

From Hertz:

Hertz also is installing thousands of chargers throughout its location network. Customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations throughout the U.S. and Europe.

Hertz will offer a premium and differentiated rental experience for the Tesla EVs. This includes digitized guidance to educate customers about the electric vehicle to get them on their way quickly, and coming soon, an expedited EV rental booking process through the Hertz mobile app.

With the current order, EVs will comprise more than 20 percent of Hertz global fleet and is expected to be supported by a combination of Level 2 and DC fast charging in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023. Hertz said these ambitions could be affected by factors outside of Hertz’s control, such as semiconductor chip shortages or other constraints.

While Model 3s should be available across North America and Europe almost immediately, Hertz said it would be focusing on fielding them at metropolitan airport locations to start. To help them advertise this, they’ve opted to employ seven-time Super Bowl champion Tom Brady. Having been needlessly hard on the football legend in the past, I’ll save any negative things I have to say about him for another time. Regardless of what I think, he’s hardly a stranger to product endorsements and will undoubtedly do an exemplary job hawking rental EVs.

“Hertz is changing the game when it comes to the future of mobility and has come through for me time and time again,” Brady said. “Although the company has been around for over 100 years, their constant evolution, especially now, is something that is amazing to be a part of. I’ve been driving an EV for years and knowing Hertz is leading the way with their electric fleet speaks to how the world is changing and the way companies are approaching being environmentally and socially conscious. I’ve always loved how easy and convenient Hertz makes it for me when I’m traveling to my favorite places like New York, LA and Tampa and can’t wait to see what they continue to have in store.”

See? Despite how creepy some people understandably find him, the dude is a complete professional. Perhaps you’ll even match his football prowess if you rent from the same company that pays him money to say things.

Meanwhile, news that Hertz was buying up EVs resulted in bumping Tesla’s stock to a $1 trillion market cap. The deal brought Tesla stock to more than $1,045 per share by noon, resulting in a new record just one trading day after the shares broke $900. The stock closed up 12.66 percent at about $1,022 a share. Bloomberg cited it as the largest ever single purchase of EVs, estimating the total cost at $4.2 billion.

CEO Elon Musk issued a celebratory tweet suggesting that these were “wild times.”

<img data-attachment-id=”1777056″ data-permalink=”https://www.thetruthaboutcars.com/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement/hertz-tom-brady/” data-orig-file=”https://www.thetruthaboutcars.com/wp-content/uploads/2021/10/hertz-tom-brady.jpg” data-orig-size=”2700,1800″ data-comments-opened=”1″ data-image-meta=”{“aperture”:”0″,”credit”:””,”camera”:””,”caption”:”Tom Brady on the set of the Hertz \”Let’s Go\” Campaign Celebrating the future of mobility by making Electric Vehicle rentals fast, seamless and more accessible than ever before”,”created_timestamp”:”0″,”copyright”:””,”focal_length”:”0″,”iso”:”0″,”shutter_speed”:”0″,”title”:””,”orientation”:”0″}” data-image-title=”hertz tom brady” data-image-description=”

Hertz

” data-medium-file=”http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-7.jpg” data-large-file=”http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-1.jpg” class=”aligncenter size-large wp-image-1777056″ src=”http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-1.jpg” alt width=”610″ height=”407″ srcset=”http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-1.jpg 610w, http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-6.jpg 75w, http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-7.jpg 450w, http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-8.jpg 768w, http://greatoldtrucks.com/wp-content/uploads/2021/10/hertz-buying-100000-tesla-vehicles-for-rental-fleet-brady-endorsement-9.jpg 120w” sizes=”(max-width: 610px) 100vw, 610px”>

[Images: Hertz]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

For GREAT deals on a new or used Chevrolet check out Tom Bell Chevrolet TODAY!

The Great Used Car Buyup of 2021

<img data-attachment-id=”1678584″ data-permalink=”https://www.thetruthaboutcars.com/2019/06/ask-bark-did-i-throw-away-the-key-to-a-new-car/shutterstock_731078407/” data-orig-file=”http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-5.jpg” data-orig-size=”1000,667″ data-comments-opened=”1″ data-image-meta=”{“aperture”:”0″,”credit”:””,”camera”:””,”caption”:””,”created_timestamp”:”0″,”copyright”:””,”focal_length”:”0″,”iso”:”0″,”shutter_speed”:”0″,”title”:””,”orientation”:”0″}” data-image-title=”inflatable tube man wacky waving style dealer lot” data-image-description=”

Gretchen Gunda Enger/Shutterstock

” data-medium-file=”http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-2.jpg” data-large-file=”http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021.jpg” class=”aligncenter size-large wp-image-1678584″ src=”http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021.jpg” alt width=”610″ height=”407″ srcset=”http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021.jpg 610w, http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-1.jpg 75w, http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-2.jpg 450w, http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-3.jpg 768w, http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-4.jpg 120w, http://greatoldtrucks.com/wp-content/uploads/2021/06/the-great-used-car-buyup-of-2021-5.jpg 1000w” sizes=”(max-width: 610px) 100vw, 610px”>

With automakers having a difficult time keeping production schedules thanks to COVID restrictions nuking demand and upending supply chains, 2021 arrived with plenty of problems. Desperate to replenish fleets they had sold off while everyone was locked indoors, rental agencies went on a used car buying spree. But it wasn’t just rental fleets that needed to be restocked, dealerships are also finding themselves with fewer models on the lot than they’re accustomed to — which is a bad position to be in when surveys have revealed consumers are now willing to pay stupidly high prices for automobiles.

They’re reportedly going to great lengths to acquire used cars as the great buyup of 2021 continues.

While the average transaction for a new vehicle now exceeds $40,000 (depending on the source), the going rate for a used one is typically several grand more than it would have been just a few months earlier. Wholesale prices for used cars sold at auction are up 39 percent since the start of 2021 and retail values are up about 20 percent over the same period. It’s quite the steep curve but mimics the general trajectory we’ve seen of consumer goods over the last six months.

According to Automotive News, the situation has encouraged dealerships to get increasingly aggressive in regard to procuring additional vehicles. Some are now scouring private seller havens like Craigslist and Facebook’s marketplace for loose automobiles, with the biggest names (e.g. Carvana) flipping them on the very same channels.

The outlet spoke with Premier Automotive Group’s principal dealer, Troy Duhon, who explained he was issuing sales staff $200 to $400 for acquiring secondhand cars or trucks from private sellers.

“I had one particular salesperson last month buy 10 off the street,” Duhon explained. “And I made over $40,000 on those 10 vehicles.”

His franchise of 24 stores has managed to snag roughly 20 models per location this year, with Duhon claiming it was the smartest thing he’s done in two decades.

From AN:

With wholesale prices climbing to record highs week after week, dealers have become especially innovative in how they land quality used inventory to meet demand and preserve margins — although most have been extraordinarily profitable in this unprecedented market.

The need for inventory has become so acute that it has forced some dealers, such as DeNooyer Automotive Family in Michigan, to make difficult decisions.

Managing Partner Todd DeNooyer said the group has had to prioritize local customers, in many cases requiring out-of-market customers to have a trade-in vehicle in order to buy a car or truck.

“It’s kind of a tough decision to make as a dealer because you always want every sale you can, but you have to take a step back and realize that I want to sell to somebody that’s going to continue to do business with me over time,” DeNooyer said.

Other tactics have included asking existing customers to end their leases early so that vehicles can be placed on the lot for those juicy margins and entertaining a willingness to sell cars carrying more miles than would have previously been profitable. Many dealerships are finding themselves with fewer cars than seems prudent. To remedy this, some are accepting automobiles that aren’t in the kind of shape you might normally think would preclude them from being found anywhere but the sketchiest of stores.

It’s a solution we’ve also seen utilized by rental agencies, especially those that took the worst financial beatings during 2020.

The Manheim Used Vehicle Value Index was up 48 percent (year over year) in May. It was a record and helped by a 3 percent increase in secondhand automotive sales during the period. Meanwhile, retail supplies have remained low (averaging 38 days) while demand continues to climb. Around a quarter of these cars don’t even have time to go through the service department due to public hunger.

J.D. Power has claimed that the slowed growth of wholesale pricing over the last few weeks ending on June 6th could be indicative of some kind of stabilization. But we’ve seen little hard evidence that prices are going to decline anytime soon until inflation is wrangled and new vehicle production normalizes — which requires supply chains (e.g. semiconductor providers) to get their act together. David Paris, J.D. Power’s senior manager of market insights, seems to agree.

“I don’t think personally we’re going to see used prices fall off the face of the planet,” he said. “When they do start to come down, it’s going to be a gradual move downward as new-vehicle production gradually comes back on.”

The only upside is that private sellers can make a small fortune selling their vehicles to a desperate dealership. But that might be a risky play if they don’t have another form of transportation waiting in the wings. Stores are making big money on these cars and the markups are exceptionally steep. It’s kind of like how massive financial institutions are buying up homes for a premium and then turning them around on desperate consumers by jacking up the price or transitioning them into high-end rental properties.

We’re just wondering how long this all lasts. These massive jumps in pricing hardly seem sustainable with the cost of living going up across North America and showrooms cannot continue making money like this forever. Too many people have told us that they’re just going to try and wait out the market and see how frugal they can be in the interim. For those of you who don’t recall, our last giant recession took place shortly after housing prices spiked and fuel costs skyrocketed.

[Image: Gretchen Gunda Enger/Shutterstock]

Toyota’s Akio Toyoda Chosen 2021 World Car Person of the Year

Selected 2021 World Car Awards Person of the Year was Akio Toyoda, Toyota Motor Corporation (TMC) president and CEO.

“Akio Toyoda is the charismatic President and CEO of Toyota Motor Corporation. He has spent years successfully remaking his company. In 2020 despite COVID-19, under his leadership Toyota remained profitable, protecting jobs worldwide. He has maintained Toyota’s steady pace of development in the connected, autonomous, shared and electric (CASE) era. He has also initiated construction of the Woven City, an exciting, real-life prototype city of the future. All while actively participating in motorsports himself, as a driver,” said the World Car Awards in a statement.

Toyoda said, “At Toyota, we are very fortunate that we were able to protect the employment of our team members during COVID-19 and continue our work to meet the future challenge of our industry. Creating new ways to support the well-being of our planet and people everywhere is our commitment. This has been a difficult period in the history of the world. But it has also reminded us that people are what matters most. And if we at Toyota can contribute some measure of happiness to their lives, it will be my never-ending goal to do just that.”

Toyota joined the company in 1984, after graduating with a law degree from Keio University. He also received a masters in business administration from Wellesley, Massachusetts’ Babson College. Toyoda served in different areas of the business in Japan and overseas, before becoming a member of the TMC board of directors in 2000. He held other senior and executive vice-presidential roles until becoming TMC president in 2009.

The World Car Person of the Year award was established in 2018 to acknowledge the contributions made by an individual in the auto industry during the previous year. The World Car Awards program hands out six awards annually, which they started doing in 2003. A group of more than 90 journalists, none of whom are a part of TheTruthAboutCars.com, made the selection.

[Images: Toyota, Babson College]

For GREAT deals on a new or used Buick or GMC check out Motor City Buick GMC TODAY!

Tag: Sales and Marketing

Hertz Buying 100,000 Tesla Vehicles for Rental Fleet, Brady Endorsement

Related

The Great Used Car Buyup of 2021

Related

Toyota’s Akio Toyoda Chosen 2021 World Car Person of the Year

Related