Boston, MA 08/21/2014 (wallstreetpr) – World has seen General Motors turning from the best auto maker to the most cursed one; recent recall of various car model by the company was a big example of it. Not more than a week past and seems like another automaker has joined the list. According to reports, Hertz Global Holdings, Inc. (NYSE:HTZ) has become the new victim of auto recall problem.
HTZ withdraws full year financial reporting:
US auto market is going through a tough time as a lot of car manufacturers have recalled their cars in last few months. Hertz Global Holdings, Inc. (NYSE:HTZ) has joined the party that has resulted in 13% slump in the share prices of the company. The company has also decided to withdraw its full year financial forecast. When reporters tried to know the exact reasons, one of the spokespersons of HTZ said, “The cost associated with the recall of the cars has gone very high which has forced the management to withdraw the yearly financial outlook.”
Carl Icahn, the seasoned activist investor who reported 8.48% stake in Hertz Global Holdings, Inc. (NYSE:HTZ), said, “I intend to engage in conversation with the management and discuss operational failures and financial issues.” HTZ has been going through a tough time for quite some time now; as a result of which the morale of the management is not high. Icahn further added, “I will also discuss about the below expectations performance of HTZ. Employees have lost their confidence that is a major issue and management will have to step in to resolve this problem.”
Hertz Global Holdings, Inc. (NYSE:HTZ) seems out of the options at the moment; therefore, it needs a helping hand desperately. In a statement, it said, “We value the views of all the shareholders and welcome a constructive dialogue with them.” As soon as Icahn was disclosed, the shares of HTZ went down by 3.9% during intraday trading.