The Untold Story of Hertz: Major Milestones, Scandals, and Future Plans (2025)

Curious about Hertz’s rise, fall, and surprising comeback? Founded in 1918, Hertz has seen over a century of innovation, bankruptcy, scandal, and now, bold reinvention in 2025. From its humble beginnings as a small car rental company in Chicago to becoming a global automotive player, Hertz has made headlines in every decade—sometimes for the right reasons, and other times not. This article breaks down Hertz’s complete journey: major milestones, shocking controversies, and what’s coming next in the EV and AI-powered rental space.

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The History of Hertz: From 1918 to Global Recognition

Hertz was founded in 1918 by Walter L. Jacobs, who started with just 12 Model T Fords in Chicago. The company was soon acquired by John Hertz, whose name the brand still carries. By the 1920s, Hertz was already becoming a household name for automotive rentals.

In the decades that followed, Hertz pioneered several rental innovations:

• 1930s: First to offer cars at airports

• 1950s: Launched the first computerized car rental system

• 1980s–90s: Global expansion and fleet modernization

By the early 2000s, Hertz had locations in more than 150 countries. The brand became synonymous with reliable business and leisure travel.

Scandal and Setbacks: Bankruptcy and Controversies

The 2020 Bankruptcy

In May 2020, during the height of the COVID-19 pandemic, Hertz filed for Chapter 11 bankruptcy in the U.S. The collapse was caused by:

• A sharp decline in travel

• Massive debt obligations

• Fleet overvaluation

Hertz emerged from bankruptcy in 2021, thanks to new investors and a strategic overhaul.

False Arrest Cases

One of the darkest chapters in Hertz’s recent history involved the false theft report scandal. Over 360 customers were wrongly accused of stealing vehicles due to system errors and poor recordkeeping. Several customers were arrested or jailed, leading to lawsuits and a $168 million settlement in late 2022.

2024 Data Breach

In late 2024, Hertz experienced a significant data breach involving third-party vendors. Personal information of thousands of customers was exposed, including driver’s licenses and credit card data. The company responded by offering free identity monitoring and tightening its cybersecurity.

2025 and Beyond: Innovation and Future Strategy

EV Fleet Transition

Hertz has committed to electrification in 2025, promising to transition over 25% of its fleet to electric vehicles (EVs). Key partnerships with Tesla, Polestar, and GM are helping to shape this strategy.

Benefits include:

• Lower operating costs

• Zero emissions initiatives

• Attracting eco-conscious renters

AI-Powered Damage Scanners

In 2025, Hertz rolled out AI damage scanners (developed by UVeye) at 30+ U.S. airport locations. The scanners detect scratches and dents in seconds, streamlining the check-in/check-out process. However, customers have complained about being unfairly charged for pre-existing damage.

🧩 Strategic Cuts & Restructuring

To stay profitable, Hertz announced cost-cutting measures including:

• Reducing the number of underperforming EVs

• Selling non-core assets

• Simplifying their fleet model

Analysts believe these moves could help Hertz re-focus on quality over quantity.

FAQ: What People Ask About Hertz

When was Hertz founded?

Hertz was originally founded in 1918 in Chicago by Walter L. Jacobs.

Why did Hertz file for bankruptcy?

Hertz filed for bankruptcy in 2020 due to reduced travel demand from the COVID-19 pandemic and high debt.

What happened with Hertz and false arrests?

Hertz mistakenly reported hundreds of customers for vehicle theft, leading to lawsuits and a $168 million settlement in 2022.

Is Hertz moving to electric cars?

Yes, in 2025 Hertz is expanding its electric vehicle fleet with cars from Tesla, GM, and Polestar.

What is the Hertz AI scanner controversy?

Hertz uses AI scanners to detect car damage, but customers claim the system sometimes falsely charges them for prior damage.

Was Hertz involved in a data breach?

Yes, in late 2024, Hertz reported a major data breach involving a third-party vendor, affecting thousands of customers.

Can I save money with a Hertz coupon code?

Yes, you can often find verified Hertz coupon codes online that offer savings on rental rates, upgrades, or weekend specials.

Conclusion

The story of Hertz is far more complex than most travelers realize. From its early 20th-century roots to its near-collapse during COVID-19, Hertz has weathered massive changes—both good and bad. Scandals like the false arrest lawsuits and the recent data breach have challenged its reputation. But with a renewed focus on innovation, like AI-powered systems and electric vehicles, Hertz is aiming to rebuild itself in 2025 and beyond.

Whether you're a casual traveler, a business commuter, or just curious about major American companies, Hertz’s story offers valuable insights into corporate resilience, accountability, and reinvention.