Hertz and Penske Enter Franchise Agreement
PARK RIDGE, N.J. and BLOOMFIELD HILLS, Mich., Sept. 6, 2012 /PRNewswire/ -- The Hertz Corporation (NYSE: HTZ) and Penske Automotive Group, Inc. (NYSE: PAG) announced today the signing of an agreement for Penske Automotive Group to join Hertz's franchising network. This partnership for the Memphis, Tennessee market is part of Hertz's company-wide initiative aimed at increasing its presence in the off airport car rental markets.
"Hertz is pleased to enter into a partnership with Penske Automotive Group to encompass the franchising of the Memphis market," commented Mark P. Frissora, Chairman and Chief Executive Officer for The Hertz Corporation. "Penske is a premier brand and provides a strong platform for further enhancing the local, neighborhood market. In addition to being a well-respected company, we're confident that Penske's high levels of customer service will create a seamless experience for our customers. By partnering with Penske, Hertz will be able to accelerate our growth in key U.S. markets and further strengthen our franchising network. Over time, we expect to see our franchising relationship grow into other selected markets throughout the country."
The agreement calls for Penske Automotive Group, subject to the completion of closing conditions, to purchase the assets of Hertz's existing Memphis market, providing the opportunity to operate more than 15 Hertz airport and off-airport locations. Hertz will be providing Penske with a full array of services to help them rapidly expand their market presence while ensuring all products and services provided meet Hertz's high-standards of customer service.
"We are confident that the commercial and operating synergies between Hertz's car rental and Penske's car dealership businesses will benefit our dealership network and Hertz's rental operations," commented Roger Penske, Chairman and Chief Executive Officer, Penske Automotive Group. "Hertz's ability to harness technology and deploy the latest customer service innovations, coupled with its established customer base, will bring increased value to Penske Automotive Group's local operations."
The agreement with Penske is part of Hertz's strategy to transition select corporate markets to franchisee operations. The Penske partnership reaffirms Hertz's vision of being the global leader in mobility solutions. With more than 25% of market share, Hertz is the leading on-airport car rental brand. The Company has also been serving the local market and insurance replacement industry for more than 10 years and is a recognized supplier to more than 193 of the 209 largest insurance companies.
Operating one of the youngest and most diverse fleets in the industry, Hertz is committed to offering its customers the most technologically innovative products and services available including online check in, mobile apps, the most advanced GPS unit in the industry, NeverLost®, and self-service kiosks. Additionally, the Company pioneered vehicle specific reservation capabilities with its Green and Prestige Collections.
About Penske Automotive:
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 340 retail automotive franchises, representing 41 different brands and 30 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 170 franchises in 17 states and Puerto Rico and 170 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 2000 and has approximately 16,000 employees.
Hertz, the largest worldwide airport general use car rental brand, operates from approximately 8,650 corporate and licensee locations in approximately 150 countries. Hertz is the number one airport car rental brand in the U.S. and at 119 major airports in Europe. Hertz is an inaugural member of Travel + Leisure's World's Best Awards Hall of Fame and was named by the magazine's readers' as the Best Car Rental Agency. Hertz was also voted the Best Overall Car Rental Company in Zagat's 2012/13 U.S. Car Rental Survey, earning top honors in 14 additional categories, and the Company swept the global awards for Best Rewards Program and Best Overall Benefits from FlyerTalk.com. Product and service initiatives such as Hertz Gold Choice, NeverLost®, and unique cars and SUVs offered through the Company's Adrenaline, Prestige and Green Traveler Collections, also set Hertz apart from the competition. Additionally, Hertz owns the vehicle leasing and fleet management leader Donlen Corporation and operates the Hertz On Demand car sharing business. The Company also owns a leading North American equipment rental business, Hertz Equipment Rental Corporation, which includes Hertz Entertainment Services.
Caution Concerning Forward Looking Statements
Statements in this press release involve forward-looking statements, including forward-looking statements regarding the parties' completion of the transaction noted above. Actual results may vary materially because of risks and uncertainties, including completion of binding documentation, regulatory approvals, and other conditions many of which may be outside of our control. These forward-looking statements should be evaluated together with additional information about Hertz Corporation and Penske Automotive's business, markets, conditions and other uncertainties which could affect their future performance. These risks and uncertainties are addressed in Hertz Corporation's and Penske Automotive's respective Form 10-Ks for the year ended December 31, 2011, and their other respective filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and the parties disclaim any duty to update the information herein.
SOURCE The Hertz Corporation