Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 12, 2008 9:20:12 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Rental Biz Sees Small-Car Shortage

Posted Jul 14, 08 6:43 AM CDT in Business 

(Newser) – Rental car companies can't meet the soaring demand for more fuel-efficient small cars and are forcing irritated customers to take "upgrades" to gas-guzzlers. Rocketing gas prices are putting pressure on Hertz, Avis, and other companies to sell their luxury cars and SUVs to pay for fuel-efficient models. Bookings for economy cars at one major travel agency were up 14% while the demand for luxury cars plummeted 24%.

"Just six months ago, anybody would have taken a Chevy Trailblazer SUV in lieu of a four-cylinder Cobalt. Not now," an industry consultant told the Los Angeles Times. "That's a big deal. That's 25 years of history changing."

Source Los Angeles Times

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Ford Put Brakes on GM Merger Talks

    Oct 11, 08 5:34 PM CDT
    Ford Put Brakes on GM Merger Talks Ford rejected merger overtures from GM earlier this year and decided to ride out its financial issues alone, the Wall Street Journal reports. The GM-Ford talks were “very loose and preliminary, more exploratory in nature than anything else,” a source said. Both companies have denied bankruptcy rumors, but credit rating agencies and analysts have raised concerns about their high rate of spending.
    More »

  • In Crisis, Wheels Coming Off for Detroit Automakers

    Oct 10, 08 9:19 AM CDT
    In Crisis, Wheels Coming Off for Detroit Automakers The situation in Detroit looked bleak before the current economic crisis; now, it looks apocalyptic, the Washington Post reports. As GM’s stock fell 31% yesterday. Adjust for inflation, and the company is worth far less now than it was after the 1929 crash. “It’s devastating,” said Michigan Gov. Jennifer Granholm. “Companies that are already slammed by globalization are being slammed by the credit crunch.” More »

  • Bush OKs $25B for Car Giants

    Sep 30, 08 7:26 PM CDT
    Bush OKs $25B for Car Giants President Bush today approved the $25 billion in low-interest loans aimed at helping US automakers in their transition to building more fuel-efficient vehicles, the Wall Street Journal reports. The industry long pushed for the package, estimating the total cost of the makeover at $100 billion. It’s now up the Energy Department to set eligibility guidelines, with lawmakers hoping funds can be available by mid-2009.
    More »

  • House OKs $25B Detroit Rescue

    Sep 25, 08 3:29 AM CDT
    House OKs $25B Detroit Rescue The House has approved a $25 billion lifeline to Detroit's battered auto industry, the Detroit Free Press reports. The package of low-interest loans to help automakers switch to manufacturing more fuel-efficient vehicles is expected to be approved by the Senate today and signed by the president soon after. Michigan lawmakers cheered the news, saying it would save thousands of jobs.
    More »

  • Auto Giants Press Congress for $25B Loan

    Sep 18, 08 9:43 AM CDT
    Auto Giants Press Congress for $25B Loan The CEOs of US auto giants seem to have convinced some in Congress they, too, need billions in federal loans, the Detroit Free Press reports, though it’s uncertain if they’ll get the $25 billion they’re asking for. High oil and commodity prices and tightened credit threaten jobs in an already ailing industry, the heads of General Motors, Ford, and Chrysler told lawmakers yesterday.
    More »

Hertz Chairman and CEO Mark Frissora poses with a Toyota Prius hybrid car. Hertz announced it is adding hybrid vehicles to its fleet.   (AP Photo/Mark Lennihan)
A Suburban would have been considered an upgrade from a compact rental car a few months ago, but customers now demand more fuel efficient cars.   (AP Photo/David Zalubowski)
The 2008 Ford Focus. Car rental companies can't meet the soaring demand for more fuel efficient cars.   (AP Photo/Carlos Osorio)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 4)

Tags

General Motors  • Ford  • Chrysler  • Thrifty  • sub compact  • car rental  • compact


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »