Hertz Global Holdings declared on Wednesday that his car sales unit was collaborating with the Amazon.com car retail platform, Amazon Autos, to sell used vehicles, sending the shares of the cars growing 9 % in pre-market trading. The actions of the used car retailers went down in front of the bell, with the Avis budget group down 5.5 percent, Carvana lost 4.4 percent and Carmax disappeared 2.6 percent.
The collaboration is based on the recent expansion of Amazon Autos in the sales of used vehicles, Hertz said.
Amazon launched Amazon Autos last year to expand the services of the online retail platform to include used and certified used vehicles, with participating retailers in over 130 US cities. The billionaire Hedgefund Bill Ackman has increased his participation in Hertz at the beginning of this year almost 20 % through his investment management company Pershing Square, expressing confidence in the efforts of the Management to reduce costs to improve the profit margins in the coming years despite the pressure of the current rates.
Hertz and Amazon will begin to offer their service within 75 miles from Dallas, Houston, Los Angeles and Seattle, with plans for the expansion of the 45 Hertz Car Sales offices in the United States.
Hertz Global, based in Florida, manages its car rental business through its rental brands of dollar vehicles, parsimonosis and fireflies in 160 countries and also manages a car sharing activity in Europe.
The Auto Hertz sales brand offers used cars for sale online and in locations in the United States
Hertz has been under pressure from the accused rental application, forcing him to lose most of his electric vehicle fleet in favor of gas cars in recent years.
He also drawn control over his sensors powered by artificial intelligence – used to control the vehicles returned for damage – that some customers according to customers have often failed.
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