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Post by nobbynomad on Apr 4, 2024 19:44:00 GMT
Apparently the business is now valued at $1.2 billion against a $2 billion purchase price. Knighthead have overseen €5 billion in value after they first acquired Hertz.
Sales ok, costs are the problem following a decision to go more EV (to the tune of 60,000 EV vehicles ) which have turned out to be over costly in terms of maintenance and repairs.
Now on a cost reduction drive with a 1/3rd of the EV vehicles being replaced by ‘gas’.
Big changes at the top of the Business.
Stressing Knighthead and possible ramifications for Blues plans?
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Post by bubba on Apr 4, 2024 20:35:35 GMT
Apparently the business is now valued at $1.2 billion against a $2 billion purchase price. Knighthead have overseen €5 billion in value after they first acquired Hertz.
Sales ok, costs are the problem following a decision to go more EV (to the tune of 60,000 EV vehicles ) which have turned out to be over costly in terms of maintenance and repairs. Now on a cost reduction drive with a 1/3rd of the EV vehicles being replaced by ‘gas’. Big changes at the top of the Business. Stressing Knighthead and possible ramifications for Blues plans?
Is this copy and pasted? I don't understand what this means.
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Post by bignumbernine on Apr 4, 2024 20:41:21 GMT
I’m financially illiterate. What does this mean for us?
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Post by nobbynomad on Apr 4, 2024 20:52:29 GMT
Apparently the business is now valued at $1.2 billion against a $2 billion purchase price. Knighthead have overseen €5 billion in value after they first acquired Hertz.
Sales ok, costs are the problem following a decision to go more EV (to the tune of 60,000 EV vehicles ) which have turned out to be over costly in terms of maintenance and repairs. Now on a cost reduction drive with a 1/3rd of the EV vehicles being replaced by ‘gas’. Big changes at the top of the Business. Stressing Knighthead and possible ramifications for Blues plans?
Is this copy and pasted? I don't understand what this means.
Apologies that wasn’t clear. When Knighthead Capital and Certares Management won the auction to acquire Hertz for a cost of $2 billion, they later went on to introduce the new business to the markets and its value soared to $5 billion. To my understanding this is included in the reported $9 billion worth of assets that Knighthead look after. Shares have now tanked to below what they paid. |
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Post by bubba on Apr 4, 2024 21:05:37 GMT
OK thanks, seems like the business model is fine they've just experienced a short to medium term hit to their costs. They wouldn't normally keep fleets for more than 3 years I wouldn't expect (this is an assumption not knowledge) and so a bit like blues winding down players' contracts it's something that will right itself in couple of years when the fleet turnover takes place, and obviously are mitigating the ongoing costs in the meantime by replacing a third of the fleet now. On the face of it without seeing any other financials it could be an excellent time to invest.
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Post by nobbynomad on Apr 4, 2024 21:11:22 GMT
OK thanks, seems like the business model is fine they've just experienced a short to medium term hit to their costs. They wouldn't normally keep fleets for more than 3 years I wouldn't expect (this is an assumption not knowledge) and so a bit like blues winding down players' contracts it's something that will right itself in couple of years when the fleet turnover takes place, and obviously are mitigating the ongoing costs in the meantime by replacing a third of the fleet now. On the face of it without seeing any other financials it could be an excellent time to invest. |
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Post by bubba on Apr 4, 2024 23:28:17 GMT
A Goldman Sachs analyst has downgraded the stock to a sell citing a potential 3 to 4 year recovery timeline, will be interesting to revisit this a year from now.
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Post by tonyhancock on Apr 4, 2024 23:44:28 GMT
We've discussed EVs before. In the Selly days. I said it then, and I say it now, the plan isn't to get us into EVs, it's to get us out of cars.
EVs for the masses, won't happen. Either ICEs will get a stay of execution, or it'll be cars for the better off, only.
I understand the Post Office had 'invested' a shit load in EVs. If so, they're toast.
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Post by sapfo on Apr 5, 2024 0:14:43 GMT
I tried to hire Hertz van recently and the bloody forgot password link would send me a password, so they are £50 down from me this week.
On the share price. Buy long.
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Post by choc on Apr 5, 2024 9:39:41 GMT
We've discussed EVs before. In the Selly days. I said it then, and I say it now, the plan isn't to get us into EVs, it's to get us out of cars. EVs for the masses, won't happen. Either ICEs will get a stay of execution, or it'll be cars for the better off, only. I understand the Post Office had 'invested' a shit load in EVs. If so, they're toast. Well if that's the government master plan they will need to sort public transport which is none existent to very poor in most places these days. |
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Post by bignumbernine on Apr 5, 2024 10:07:34 GMT
We've discussed EVs before. In the Selly days. I said it then, and I say it now, the plan isn't to get us into EVs, it's to get us out of cars. EVs for the masses, won't happen. Either ICEs will get a stay of execution, or it'll be cars for the better off, only. I understand the Post Office had 'invested' a shit load in EVs. If so, they're toast. What makes you say they (I presume the government or industry?) don’t want us in cars? Why don’t they want us all in electric cars? |
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Post by bubba on Apr 5, 2024 10:21:27 GMT
We've discussed EVs before. In the Selly days. I said it then, and I say it now, the plan isn't to get us into EVs, it's to get us out of cars. EVs for the masses, won't happen. Either ICEs will get a stay of execution, or it'll be cars for the better off, only. I understand the Post Office had 'invested' a shit load in EVs. If so, they're toast. What makes you say they (I presume the government or industry?) don’t want us in cars? Why don’t they want us all in electric cars? Control.
Populations that have limited movement are easier to control, 15 minute cities, identity cards/papers, mobile phone tracking with GPS, a cashless society, moves to outlaw anonymity on social media, digital profiles held on people made up from monitoring their internet usage, sites visited, purchases made thank you cookie technology, trackIng and the NSA, wearable tech and biotech hooked up to the net via wifi.
We are monitored, profiled and increasingly unable to operate outside the soon to be cashless techno society and with it any notion of anonymity and largely privacy, hell many people are happy to let google put listening devices in the privacy of their own homes fgs, so it's just another step to disempowering the masses and increasing the grip on total power.
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Post by tonyhancock on Apr 5, 2024 12:11:08 GMT
We've discussed EVs before. In the Selly days. I said it then, and I say it now, the plan isn't to get us into EVs, it's to get us out of cars. EVs for the masses, won't happen. Either ICEs will get a stay of execution, or it'll be cars for the better off, only. I understand the Post Office had 'invested' a shit load in EVs. If so, they're toast. Well if that's the government master plan they will need to sort public transport which is none existent to very poor in most places these days. It's not just that. I've gone through it, before. We've all had to queue at petrol stations. Imagine how long you'd be queing if it took an hour plus, per car. Re-fueling stations would need fields full of charging points. The national grid. You may have had to have a bigger wire installed, to cope with an electric shower. It's much like you couldn't feed 3 houses off a 15mm water pipe. It may be the grid expected more industrial use when it was designed, but I'd guess, it'd need replacing should it have to carry all the energy required to power all the cars. That's without their brilliant do away with domestic gas idea. Then there's the car batteries. Complete lottery on how a second hand electric car has been treated. The battery goes on a five grand electric car, and you have a drive ornament. Plus the cost of disposal. What's the government doing ? Encouraging working from home, and getting rid of car lanes, in favour of bus and cycle lanes, making it a pain to drive a car. You might have noticed, there's always some road works, (with no workers), whenever you want to go anywhere. Town centres, crumbling. Seaside towns, full of new engineers, scientists and doctors. They don't want us in any cars, and they want to be able to track, and remotely switch off, what cars there are. Electric cars for everyone, won't happen. Not without some wonder technology. |
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Post by choc on Apr 5, 2024 14:30:32 GMT
Well if that's the government master plan they will need to sort public transport which is none existent to very poor in most places these days. It's not just that. I've gone through it, before. We've all had to queue at petrol stations. Imagine how long you'd be queing if it took an hour plus, per car. Re-fueling stations would need fields full of charging points. The national grid. You may have had to have a bigger wire installed, to cope with an electric shower. It's much like you couldn't feed 3 houses off a 15mm water pipe. It may be the grid expected more industrial use when it was designed, but I'd guess, it'd need replacing should it have to carry all the energy required to power all the cars. That's without their brilliant do away with domestic gas idea. Then there's the car batteries. Complete lottery on how a second hand electric car has been treated. The battery goes on a five grand electric car, and you have a drive ornament. Plus the cost of disposal. What's the government doing ? Encouraging working from home, and getting rid of car lanes, in favour of bus and cycle lanes, making it a pain to drive a car. You might have noticed, there's always some road works, (with no workers), whenever you want to go anywhere. Town centres, crumbling. Seaside towns, full of new engineers, scientists and doctors. They don't want us in any cars, and they want to be able to track, and remotely switch off, what cars there are. Electric cars for everyone, won't happen. Not without some wonder technology. What you say about our infrastructure is true and I've been saying the same things for years. Even before the electric car was invented. More people are working from home, which IMO doesn't work for the efficiency of the country, but many aren't able to do this. The list is endless. I've noticed that friends are family are starting to drift back to the office. Public transport is essential for Jo public to get about but is being eroded every day. The 144/143 bus service between Worcester and Birmingham has gone. A service that was there from year dot and very popular but ended because of new rules and regulations made up by someone who sits behind a desk and most probably drives to work in their brand new electric car. I am going nowhere near an electric car and I replace mine every 18 months to 2 years. |
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Post by Professor Frink on Apr 5, 2024 15:30:49 GMT
There is a trend for alot of companies in the city to be pulling their staff back into offices.
I suspect the pull of the billions of $$ that are tied up in pension investments on corporate real estate are influencing these decisions
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Post by tonyhancock on Apr 5, 2024 15:33:07 GMT
It's not just that. I've gone through it, before. We've all had to queue at petrol stations. Imagine how long you'd be queing if it took an hour plus, per car. Re-fueling stations would need fields full of charging points. The national grid. You may have had to have a bigger wire installed, to cope with an electric shower. It's much like you couldn't feed 3 houses off a 15mm water pipe. It may be the grid expected more industrial use when it was designed, but I'd guess, it'd need replacing should it have to carry all the energy required to power all the cars. That's without their brilliant do away with domestic gas idea. Then there's the car batteries. Complete lottery on how a second hand electric car has been treated. The battery goes on a five grand electric car, and you have a drive ornament. Plus the cost of disposal. What's the government doing ? Encouraging working from home, and getting rid of car lanes, in favour of bus and cycle lanes, making it a pain to drive a car. You might have noticed, there's always some road works, (with no workers), whenever you want to go anywhere. Town centres, crumbling. Seaside towns, full of new engineers, scientists and doctors. They don't want us in any cars, and they want to be able to track, and remotely switch off, what cars there are. Electric cars for everyone, won't happen. Not without some wonder technology. What you say about our infrastructure is true and I've been saying the same things for years. Even before the electric car was invented. More people are working from home, which IMO doesn't work for the efficiency of the country, but many aren't able to do this. The list is endless. I've noticed that friends are family are starting to drift back to the office. Public transport is essential for Jo public to get about but is being eroded every day. The 144/143 bus service between Worcester and Birmingham has gone. A service that was there from year dot and very popular but ended because of new rules and regulations made up by someone who sits behind a desk and most probably drives to work in their brand new electric car. I am going nowhere near an electric car and I replace mine every 18 months to 2 years. Nice. If you can afford a Tesla, then crack on, other than that, you're just buying a headache, and enabling wanky legislation. It's a pity the public didn't nip it in the bud, and refuse to buy electric cars, no matter how much the government made other people contribute to the cost. |
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Post by tonyhancock on Apr 5, 2024 15:37:08 GMT
There is a trend for alot of companies in the city to be pulling their staff back into offices. I suspect the pull of the billions of $$ that are tied up in pension investments on corporate real estate are influencing these decisions You'd think there would be some lobbying on that front. You'd also think the car manufacturers would be having a hissy fit. Something's not right. |
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Post by Professor Frink on Apr 5, 2024 17:49:32 GMT
There is a trend for alot of companies in the city to be pulling their staff back into offices. I suspect the pull of the billions of $$ that are tied up in pension investments on corporate real estate are influencing these decisions You'd think there would be some lobbying on that front. You'd also think the car manufacturers would be having a hissy fit. Something's not right. Not really. As long as organizations are happy to fill office spaces why would they need to lobby? |
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Post by gammo on Apr 5, 2024 18:19:35 GMT
There is a trend for alot of companies in the city to be pulling their staff back into offices. I suspect the pull of the billions of $$ that are tied up in pension investments on corporate real estate are influencing these decisions Not surprised if this is happening - what chance has a boss got on checking performance if the person isn't in front of them? |
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Post by Professor Frink on Apr 5, 2024 19:33:21 GMT
There is a trend for alot of companies in the city to be pulling their staff back into offices. I suspect the pull of the billions of $$ that are tied up in pension investments on corporate real estate are influencing these decisions Not surprised if this is happening - what chance has a boss got on checking performance if the person isn't in front of them? If you’re in a role where you are concerned about your boss checking your productivity- that should be the least of your concerns. With the capability of AI - all those sort of office jobs will be near in eliminated or significantly reduced in next few years as AI capability grows |
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Post by tonyhancock on Apr 5, 2024 21:00:35 GMT
Well if that's the government master plan they will need to sort public transport which is none existent to very poor in most places these days. It's not just that. I've gone through it, before. We've all had to queue at petrol stations. Imagine how long you'd be queing if it took an hour plus, per car. Re-fueling stations would need fields full of charging points. The national grid. You may have had to have a bigger wire installed, to cope with an electric shower. It's much like you couldn't feed 3 houses off a 15mm water pipe. It may be the grid expected more industrial use when it was designed, but I'd guess, it'd need replacing should it have to carry all the energy required to power all the cars. That's without their brilliant do away with domestic gas idea. Then there's the car batteries. Complete lottery on how a second hand electric car has been treated. The battery goes on a five grand electric car, and you have a drive ornament. Plus the cost of disposal. What's the government doing ? Encouraging working from home, and getting rid of car lanes, in favour of bus and cycle lanes, making it a pain to drive a car. You might have noticed, there's always some road works, (with no workers), whenever you want to go anywhere. Town centres, crumbling. Seaside towns, full of new engineers, scientists and doctors. They don't want us in any cars, and they want to be able to track, and remotely switch off, what cars there are. Electric cars for everyone, won't happen. Not without some wonder technology. Christ on a penny farthing |
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Post by nobbynomad on Apr 6, 2024 7:50:07 GMT
Interesting read. Not everything Tom W touches turns to gold! EV issues, Elon M price war has meant a huge depreciation on the EV fleet, repairs take too long due to a lack of dealers franchises so cars off the road, 4 times the amount of damage compared to gas vehicles as drivers struggle with instant acceleration and breaking. And obviously range anxiety amongst travellers landing at airports and wanting to get home as quickly as possible, which results in lost sales to AVIS. Share price is really low but some analysts suggest they should bounce back over 12 months, so perhaps a good time to buy as the company reverts to more gas and the big changes at the top of the business work out. www.bloomberg.com/news/features/2024-04-03/hertz-htz-selling-electric-cars-ends-its-failed-tesla-bet?embedded-checkout=true&leadSource=uverify%20wall |
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