Rental prices have been increased for cars of Hertz Global Holdings Inc. to be picked up on Jan. 1 or later. The company raised the prices Dec. 19 to 21, 2014, for the Hertz, Dollar and Thrifty brands. Hertz Global chief executive John Tague said in a statement that the increases were to cover fleet costs that have been rising due to dropping residual values.
The company tapped Tague last month to help restore confidence in the rental giant, which has been hounded by an aging fleet and sloppy accounting. Tague succeeded Mark Frissora, who Hertz said in September resigned for personal reasons. Hertz Global is now seeking to cut costs by over $100 million annually, while increasing investment to refresh its fleet.
Hertz has yet to report any financial result this year and has even told investors not to depend on its last three years of financial statements. It announced in November that its board’s audit committee was “looking into the tone at the top” and management’s influence over accounting errors.
The company was also under investigation by the United States Securities and Exchange Commission. Hertz Global said it found that its internal controls had at least one material weakness and that it had ineffective procedures as of Dec. 31, 2013.
Hertz Global is one the three rental-car companies that controlled around 98 percent of airport car rentals in the US, the Federal Trade Commission said in 2012.