Volkswagen Looking at Acquisition of Europcar
- Europcar is struggling with travel restrictions tied to the coronavirus pandemic having negatively impacted the car-rental industry. Hertz Global Holdings Inc. has already filed for bankruptcy in May.
- A new deal for Europcar would allow Volkswagen to buy it back at a significant discount; Volkswagen had earlier sold Europcar in 2006.
- The talks are preliminary and a deal is uncertain given the precarious financial situation of Europcar. While Europcar has drawn interest from other suitors, finding a buyer in the prevailing travel slump will be challenging.
- The proposed acquisition is consistent with VW’s strategy of considering opportunities to expand its mobility services offerings, including rental and leasing programs for new and used electric cars.
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Jul 1, 2020
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Liz Lee
Liz, an Associate Director at Counterpoint Research, has 14+ years of extensive experience in the tech industry. Previously, Liz worked for Samsung SDI focusing on IR (Investor Relations) along with insight-based analysis of emerging tech markets and corporate strategies. She holds an International MBA degree from Waseda Business School.
