Hertz focus shifts to car sharing in slowdown

Rental car giant Hertz is focusing on the car sharing markets of New York, London and Paris as residents of those cities seek less costly and more environmentally-friendly alternatives to car ownership – and as the more traditional rental business slow.

President of Hertz Europe, Michel Taride, says that car sharing is increasing in popularity as the cost of maintaining a car has risen to nearly 2,750 pounds annually. Car sharing makes it possible for urban residents to rent a vehicle from a local parking bay at rates from 3.95 pounds per hour in London or four euros per hour in Paris.

“We are not necessarily the first to do it, but we believe we have the ultimate solution for car sharing — it’s economical, better for the environment, stylish and fun,” Taride commented in a telephone interview with Reuters late last week.

The company president added that Hertz was investing millions in the venture, as its traditional car and equipment rental business was experiencing lower demand and also a weakened market for used car sales.

“Times continue to be challenging from a growth standpoint,” he continued. “In a global crisis, our revenue growth figures are not what we want them to be, but our balance sheet is extremely strong.”

Thanks to www.guardian.co.uk for the above quotes, for more information on this article please visit their website.

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