Volkswagen AG is in talks to acquire French car rental firm Europcar Mobility Group SA , in a deal that would allow the German carmaker to better capitalize on its fleet
- 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.