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By David Shepardson
WASHINGTON, March 18 (Reuters) – Two U.S. Residence Democratic lawmakers on Friday requested Hertz Global Holdings, HTZ.O and Avis Spending plan Team Automobile.O to remedy inquiries about increasing rental auto rates and better field profits.
Agent Raja Krishnamoorthi, chairman of the Subcommittee on Financial and Customer Plan, and Consultant Katie Porter stated both equally rental automobile firms appear to have applied their market position to raise prices as fees fell.
They reported in a statement they want files and info by April 1 “from both equally corporations describing the improves in rental automobile selling prices inspite of slipping expenditures, as well as a list of any known investigations into these cost raises.”
The corporations did not quickly answer to requests for remark.
The lawmakers’ letters explained the financial effects counsel the corporations “might have prioritized maximum earnings and
shareholder payouts at consumers’ cost” and “could have
engaged in predatory business enterprise tactics during the pandemic, getting edge of people who count on economical rental car or truck prices.”
Last month, Hertz posted a document altered profit in the fourth quarter as need for rental cars remained robust, but put up-bankruptcy restructuring costs yielded a substantial internet reduction.
Avis Budget reported in February it experienced file revenues and internet earnings in the quarter ending Dec. 31.
The increased earnings is the consequence of an business-vast drastic maximize in costs as purchaser demand outstrips auto source with individuals returning to the rental counter for leisure and organization travel, analysts say.
(Reporting by David Shepardson Enhancing by Cynthia Osterman)
(([email protected] 2028988324))
The views and thoughts expressed herein are the sights and thoughts of the writer and do not automatically mirror these of Nasdaq, Inc.
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