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Hertz signs franchise deal with Penske Automotive

Penske Automotive LogoThe Hertz Corporation has revealed the signing of a deal with Penske Automotive Group for it to join the car rental provider’s franchising network. This agreement is part of a company-wide initiative at Hertz that aims to increase the operator’s presence at off-airport locations.

Penske Automotive represents 30 collision repair centres and 41 different brands. With a workforce of about 16,000 staff, it sells new and previously owned cars, replacement parts, insurance and finance products, and offers repair and maintenance services on all the brands it represents. Of its 340 franchises – half are located in 17 US states and Puerto Rico, and the other half are located outside the US (mostly in the UK). The group is also a member of the Russell 2000 and Fortune 500.

The deal between Hertz and Penske Automotive calls for Penske to purchase the assets of Hertz’s existing market in Memphis, Tennessee. Subject to the finalisation of closing conditions, this will provide it with the opportunity to operate over 15 airport and off-airport locations. A full range of services will be provided by Hertz to Penske, aiding them in quickly expanding their market presence. At the same time, they will ensure all services and products meet the high standards of customer service at Hertz.

This is all part of a strategy for Hertz to transition select corporate markets to franchises. The agreement reaffirms the car rental provider’s vision of being a global mobility solutions leader. It has over 25% of market share now and is the top on-airport car hire brand. The company also serves the local market and insurance replacement market. It’s recognised as a supplier for over 193 of the 209 biggest insurance providers.

Hertz operates one of the most diverse and youngest fleets in the car rental industry. It’s dedicated to offering consumers the most innovative services and products – including online check-in, the most advanced GPS systems, mobile apps, self-service kiosks and its NeverLost service. The company also pioneered the ability for travellers to reserve specific vehicles wit its Prestige, Green, Family and Adrenaline Collections.

Hertz Corporation chairman and chief executive Mark P. Frissora says that they are thrilled to partner with Penske Automotive Group to envelope the franchising of the market in Memphis. Penske is a premier brand that delivers a robust platform for further enhancing the neighbourhood market. Along with being a well-respected business, they are confident the company’s high levels of customer service will develop a seamless experience for their customers.

Frissora added that, through the partnership with Penske, they will be able to accelerate Hertz’s growth in key markets across the US. They will also be able to further strengthen their franchising network. Eventually they expect to see their franchising relationship grow into other markets across the country.

Penske Automotive Group chairman and chief executive Roger Penske says that they are confident the commercial and operating synergies between their car dealership business and Hertz’s car hire business will benefit both of their operations. The ability of Hertz to harness technology and roll out the latest customer service innovations – along with its established base of customers – will bring increased value to their local operations.

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