The Hertz Corporation

Transportation • Cars & Automobiles
Volkswagen in talks to acquire French car rental firm Europcar
Europcar in the Hamburg Airport
Europcar in the Hamburg Airport Credit: Hamburg Airport

Reuters reports that German carmaker Volkswagen approached French car rental firm Europcar, that struggles to cope with the economic impact of the Covid-19 pandemic. The deal, if completed, would signal a reversal of strategy for Volkswagen, that sold Europcar in 2006 for €3.32 billion.

In May, Europcar's competitor Hertz filed for bankruptcy protection.

Business • Economy
Hertz files for bankruptcy
Hertz car rental office in Livonia, Michigan
Hertz car rental office in Livonia, Michigan Credit: Dwight Burdette / CC BY (Creative Commons Attribution 3.0)

Hertz, the car rental company operating 10,200 corporate and franchisee locations all over the world, has filed for bankruptcy protection, excluding operations in Europe, New Zealand and Australia. Amid the Covid-19 pandemic, the company saw a sharp decrease in rentals and was not able to continue to pay its lenders. A company spokesperson said they would use over $1 billion in cash on hand to continue running its business during the bankruptcy process.