Impact of the Toyota Recall on Auto Rental: Tempest in a Tea Cup?
The operational and financial impact of the Toyota recall on the auto rental industry is expected to be minimal, according to an analysis by equity trading and research firm MKM Partners LLC.
The operational and financial impact of the Toyota recall on the auto rental industry is expected to be minimal, according to a recent analysis by equity trading and research firm MKM Partners LLC.
“We believe the operational impact of the Toyota recall for the auto rental companies will be minimal and that the financial impact should (depending on timing) be limited,” wrote Christoper Agnew, CFA senior analyst for MKM Partners.
In addition, Agnew wrote that Hertz (HTZ, Buy, $10.57) should be the most affected, with Toyota at 20 percent of its fleet mix, but only 70 percent of these vehicles are the ones affected by the recall. This compares to 7-8 percent for Avis Budget (CAR, Buy, $11.15), 4 percent for Enterprise (Private, Not Rated) and only 1.5 percent for Dollar Thrifty Group (DTG, Buy, $25.44).
To view the full report, visit The Impact of the Toyota Recall on Auto Rental: Tempest in a Tea Cup?
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