The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst
: Following up on an earlier question, and not to beat a dead horse here so perhaps asked another way. As we look at the incremental amount in
cost savings that you guys achieved in 2020 versus your projections through the year, so specifically the increase from $2 billion to $2.5 billion to
then $2.8 billion ultimately at the end of the year, how much of this would you estimate that you achieved was more structural in nature versus
more variable as you saw demand pressure return in 4Q with wave 2 outbreaks?
Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst
: Okay. Understood. That's helpful. And then touching around one of the questions on fleet purchases. Have the order cancellations that you guys
very necessarily executed in 2020, as you were depleting, impaired your relationships with the automakers at all in terms of pricing for vehicles
that you're trying to acquire for fleet in 2021 and specifically potential implications for fleet cost per unit?
And then as a follow-up to that, specifically around the semiconductor shortage, obviously, what we're seeing in the industry is that a lot of these
chips are fungible in nature and automakers are choosing where to prioritize production maintenance around higher mix and price vehicles in the
retail category, less so fleet. I know you touched upon the vehicles themselves, but is that impacting acquisition price for you in any way as you
make sure you're trying to have a fresh fleet?
Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst
: The second part of my question around the semiconductor shortages and automakers -- yes.
Question: Aileen Elizabeth Smith - BofA Securities, Research Division - Analyst
: And one last question. That's helpful. And one last question, if I may. I wanted to touch upon the 8-K that you guys issued last night in conjunction
with the results, specifically the amendment in your credit agreement. Can you talk about some of the flexibility that, that covenant headroom
provides you? What you expect to execute upon through 2021 that you might not have been able to do had you not secured that amendment?
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