Hertz And Penske Finalize Indiana Franchise Agreement
PARK RIDGE, N.J. and BLOOMFIELD HILLS, Mich., March 5, 2013 /PRNewswire/ -- The Hertz Corporation (NYSE: HTZ) and Penske Automotive Group, Inc. (NYSE: PAG) announced today the completion of a Franchisee agreement for Penske Automotive Group to become the operator of Hertz Car Rental locations in certain markets throughout Indiana. The partnership is part of Hertz's company-wide initiative aimed at increasing its presence in targeted car rental markets.
"Hertz's partnership with Penske Automotive in the Memphis market has proven successful, and extending our relationship to Indiana was the logical next step," commented Mark P. Frissora, Chairman and Chief Executive Officer for The Hertz Corporation. "The Penske team is creating the most valued car rental experience in the Memphis market and we're confident they will bring the same commitment to the Indiana car rental business. With this expanded partnership, we're confident we'll be able to accelerate our growth throughout the region and continue our expansion into the neighborhood market."
Penske Automotive Group purchased the assets of Hertz in select Indiana markets, providing the opportunity to operate more than 20 Hertz airport and off-airport locations, including the three principal airports of Indianapolis, Fort Wayne, and South Bend. 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 thrilled with the opportunity to expand our relationship with Hertz to the Indiana market," said Bud Denker, President of the Penske Car Rental operations. "This acquisition is a logical progression in our relationship. With the lasting heritage of the Penske name in motorsports, particularly in Indianapolis, combined with the strong legacy of the Hertz brand, I am confident in our ability to bring a high level of customer service and satisfaction to these locations throughout Indiana. Our expansion will allow us to begin scaling our operations with the Hertz locations we currently operate in the Memphis, Tennessee, market and will help Hertz accelerate its growth in a key market."
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.
Hertz is committed to offering customers the most technologically innovative products and services available to keep customers "Traveling at the Speed of Hertz." This includes Hertz 'Carfirmations'; 'Gold Choice', which gives Gold members the power to keep the car they reserved or simply choose a different car from the Gold Choice area; and e-Return with receipts emailed to customers within hours of return. These are all complimentary services for Hertz Gold Plus Rewards members, which is free to join. In addition, Hertz continues to expand the presence of its ExpressRent Interactive Kiosks that let customers rent a car, with or without a reservation, through a live, face-to-face video kiosk.
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 operates its car rental business through the Hertz, Dollar and Thrifty brands from approximately 10,400 corporate, licensee and franchisee locations in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. Hertz is the largest worldwide airport general use car rental brand, operating from approximately 8,800 corporate and licensee locations in approximately 150 countries. Hertz is the number one airport car rental brand in the U.S. and at 111 major airports in Europe. Dollar and Thrifty have approximately 1,580 corporate and franchisee locations in approximately 80 countries. Hertz is an inaugural member of Travel + Leisure's World's Best Awards Hall of Fame and was recently named, for the thirteenth time, 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 Plus Rewards, 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' intentions noted above completion of the transaction noted above. Actual results may vary materially because of risks and uncertainties, including 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, 2012, 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