Posts Tagged ‘Enterprise’
Thursday, September 15th, 2011
American car rental giant Avis has decided to pull out of the race to acquire budget rival Dollar Thrifty. According to the company it has withdrawn its $1.6 billion bid because the market conditions are unfavourable at the present time. Hertz Global is now the favourite to take over the firm.
Industry consultant, Neil Abrams, said Avis had also become frustrated by the process of trying to obtain antitrust approval from the authorities. Recent consolidation of the car hire business in the US means that there are only four major companies: Avis, Hertz, Dollar and Enterprise. Regulators are concerned that further consolidation will have a negative impact on the consumer.
Hertz and Avis have been keen to get their hands on the leisure market which Dollar successfully penetrates. Both of the larger firms are more geared to corporate customers. Dollar currently controls around 13 per cent of the US airport rental market relying on customers looking for a cheap deal rather than the latest model. Hertz is still to comment on the decision by Avis to withdraw its bid but has said it is continuing to seek approval from the Federal Trade Commission for a take over.
Earlier in the year Avis declared that it was to acquire its European counterpart. The company is currently seeking financing for the £636 million deal which is possibly another reason why it has pulled out of the race for Dollar.
Mr Abrams said that although the global economy remained shaky, the demand for rental vehicles was remarkably robust.
Tags: Avis, car rental, Dollar Thrifty, Enterprise, Hertz, rental vehicles
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Friday, July 15th, 2011
Enterprise Holdings has announced that it will be investing in growing its fleet of electrically powered vehicles as well as improving its infrastructure by upgrading facilities and introducing more charging stations. The car hire giant also said it was the first company in the US to introduce the Chevy Volt into its electric fleet.
Currently, Enterprise supplies customers with a range of EVs including the Nissan LEAF, the Mitsubishi i-MiEV and the Peugeot iOn. The company will be growing the number of electric vehicles available through its WeCar programme, business schemes and Enterprise branches in territories such as Seattle, San Francisco and Portland.
In a statement, Enterprise chairman and CEO Andrew Taylor said it was vital to the future of the car hire industry to keep vehicles economically viable and acceptable to the consumer. He added that 1.6 million vehicles are introduced by the industry every year, and the way in which those vehicles are powered is going to become increasingly important.
Lisa Martini, a company spokesperson, said Enterprise intended to use 5,500 branches around the US to introduce more customers to the latest alternative technology. She added that the introduction of more EVs would help Enterprise to become more environmentally friendly.
Over the coming five years, Enterprise is aiming to reduce the amount of energy it uses, along with related costs, by 20 per cent annually. By doing this, the firm said it would save around $50 million. As well as Enterprise Rent-A-Car, the firm operates the National and Alamo brands.
Tags: Alamo, car hire, Chevy Volt, electric vehicles, Enterprise, Enterprise Rent-A-Car, Mitsubishi i-MiEV, National, Nissan leaf, Peugeot iOn, WeCar
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Tuesday, July 12th, 2011
Car hire firm Hertz has indicated that it is not yet ready to give up the fight for control of Dollar Thrifty. The company said it would be extending its tender offer for the budget rental firm by a month. The exchange offer is viewed as a formality as Hertz will not be able to acquire Dollar unless it receives board approval due to a shareholder rights plan.
Avis is also in the running to takeover Dollar, but its recent $1 billion acquisition of Avis Europe has caused speculation that the rental company may not wish to enter a higher bid. Avis is yet to produce a counter offer to Hertz’s.
In May, Hertz offered $2.08 billion for Dollar having had a previous offer rejected by stake holders. The problem for all three companies is that nothing can happen until US antitrust regulators complete their investigations into how a takeover will affect competition.
The US Federal Trade Commission is concerned that consolidation of the car hire market has resulted in only four major rivals remaining: Enterprise, Avis, Hertz and Dollar. Seeing Dollar absorbed by one of its rivals is therefore worrying to those concerned with how less competition will impact on the consumer.
Because of the extension, the Hertz offer of $71.50 per share for Dollar will now expire on 5 August. The New York Stock Exchange on Monday saw Dollar shares being traded at $73.55. Although a small drop in price was recorded, it is still above the Hertz offer.
Tags: Avis, avis europe, car hire, Dollar Thrifty, Enterprise, Federal Trade Commission, Hertz
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Wednesday, June 15th, 2011
US car hire group, Avis Budget, has declared its intentions to buy Avis Europe by making an offer of 315 pence per share. The $1 billion deal will reunite the Avis brand across the Atlantic for the first time since 1986 when they split. The takeover offer has been given the nod by 60 per cent owner of the European division D’Ieteren, a Belgian based dealership.
Avis Europe boss, Pascal Bazin, said the deal would be good news for car hire customers who would benefit from a stronger global presence. The merging of the two companies would see Avis serving customers in more than 150 different countries around the globe. Mr Bazin added that it was also good news for Europe because there was now the potential to grow the brand in ways that the firm was unable to do in the past.
The buyout will also generate some $30 million in cost savings every year, according to Avis Budget, and will generate worldwide sales of $7 billion. Mr Bazin said it would also mean that there will be improved strategic benefits as well as more access to capital.
The move comes as Avis is still tied up in a long running battle with US rival Hertz over acquisition of budget hire company Dollar Thrifty. The two sides have been in talks with Dollar about a takeover, but neither has been able to secure antitrust approval from the US regulators.
Avis is currently the third largest rental company in the US ahead of Dollar Thrifty and behind Enterprise and Hertz.
Tags: Avis, Avis budget, avis europe, car hire, Dollar Thrifty, Enterprise, Hertz
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Friday, February 11th, 2011
Hertz, one of the world’s best known car hire brands, has announced a new initiative to introduce solar power to selected locations across the US. The plans involve retrofitting facilities with photovoltaic panels similar to the ones installed at the company’s outlet at Denver International Airport in December last year.
Currently there are plans to upgrade 16 locations with the intention of growing the initiative into the future. Hertz senior vice president, Richard Broome, pointed out that the company was continually striving to implement environmentally friendly practices. He said that it had already made large savings on the amount of water being used as well as supplying customers with the option to hire low-emission and electric vehicles.
Hertz has already announced plans to offer its customers the Chevrolet Volt, an electric car designed for extended journeys. The firm will also roll out the Nissan Leaf at a number of locations across Europe and the US as the cars become available, and Californian customers will be able to get their hands on the Coda EV early next year.
Rival car hire giant Enterprise is also aiming to offer more electric solutions. The Chevrolet Volt is already available, and the company will be introducing the Leaf and the Coda EV to its forecourts as soon as they are released.
Enterprise, owner of the Enterprise, National and Alamo brands has also committed itself to reducing its energy bills by around 20 per cent over the next five years. To this end, the firm has announced a $150 million investment plan.
Tags: Alamo, car hire, Chevrolet Volt, Coda EV, electric vehicles, Enterprise, Hertz, National, Nissan leaf, solar power
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Tuesday, February 1st, 2011
Car hire giant Enterprise is continuing to move forward with its commitment to greener practices by pledging $150 million to improving existing locations and making sure new locations conform to its Enterprise Sustainable Construction Protocol. The green building standard is to be implemented over the coming five years and it is predicted that by the time it is complete, the company will be making savings on water and energy of some 35 per cent.
Enterprise Holdings’ director of corporate sustainability, Lee Broughton, said the company’s initiative will have a dramatic impact on thousands of existing locations as well as future projects. Currently, the car rental firm is concentrating on around 1,000 projects which include retrofitting plans and new locations.
There are seven areas Enterprise will be concentrating on as set out in its ESCP. These include using a range of sustainable materials in existing locations and new builds, improving the use of energy, undertaking better recycling practices and conserving water. Broughton said that Enterprise hoped that the investment would reap substantial returns.
Enterprise Rent-A-Car has already been awarded accolades for its green initiatives. Last summer, the firm’s new vehicle rental location at Chicago’s O’Hare Airport was given the silver certificate by LEED, an award set up by the Green Building Council. A call centre run by Enterprise, as well as the company’s fleet management headquarters, are also LEED-certified.
Enterprise is also involved in a number of other green initiatives including research into renewable fuels and a programme for offsetting the amount of carbon the firm puts into the atmosphere.
Tags: car hire, car rental, Enterprise, Enterprise Holdings, Enterprise Rent-A-Car, LEED, O'Hare Airport
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Wednesday, November 17th, 2010
A recent survey examining how happy car rental customers are with the service they are given by particular hire firms suggests that things are improving after the recent global economic troubles. All of the major names scored better in this year’s poll than they did last year. Enterprise, for the seventh year in a row, scored the highest points with 786 out of a possible 1,000.
The survey is conducted each year by JD Power and Associates and looks at six key factors which are important to the overall satisfaction of the consumer. These are: quality of the rental car, the cost and fees, the process of picking up the car, the process of returning the vehicle, the process of reserving that vehicle and the quality of the company’s shuttle or bus service.
The survey was conducted in the US and polled customers using rental facilities at airports. The survey was conducted over the year ending in September.
In second place came another firm under the umbrella of Enterprise Holdings, National Car Rental. National scored 10 points higher than a year ago with 767 points. In third place came Hertz, up 15 points on last year with 762.
Andrew Taylor, chief executive of Enterprise Holdings, said he was pleased with the results, but added that car hire firms were still operating under some extremely challenging conditions. He went on to say that Enterprise took a great deal of pride from the fact that its customers rate its customer service as highly as they do.
Tags: airports, car rental, Enterprise, Enterprise Holdings, Hertz, hire firms, National Car Rental, rental car
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Wednesday, October 13th, 2010
Car hire firm Alamo has extended a multi-year agreement with Walt Disney Parks and Resorts to be the official car hire brand at its theme parks in Orlando and California. The extended agreement means it will also continue to be Walt Disney Travel Company’s official rental car provider.
Alamo’s parent company, Enterprise Holdings, said the partnership would continue to provide customers at Walt Disney World and Disneyland with the superior service they have come to expect from the brands. Enterprise’s vice president of travel industry relations, Ron Cerko, said the firm was proud to be able to offer the speed and efficiency provided by its self-service kiosks to individuals and families taking a holiday at the resorts.
The kiosks operate on award winning technology which means the need to join long queues in order to collect a rental vehicle is a thing of the past. As well as being available for customers’ use at the on-site car rental stations at Disneyland and Walt Disney World, Alamo has kiosks at 67 airports in the US.
Walt Disney Parks and Resorts’ senior vice president, Alliances and Operating Participants, George Aguel, said the continued alliance with Alamo would mean all aspects of a holiday with Disney would remain seamless for guests of its resorts. He added that the wish by both companies to provide a superior service to customers made the partnership an obvious one.
Alamo’s website will provide those wishing to holiday at Disney’s resorts with a link to ticket sales. Alamo will promote its ongoing partnership through adverts both on the television and online.
Tags: Alamo, car hire, Disney, Enterprise, holiday, rental car, resort
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Thursday, October 7th, 2010
Dollar Thrifty’s management was foiled in its attempts to reach a deal with Hertz last week by its own shareholders. The day before the vote on whether to accept Hertz’s offer, which equated to $50.88 per share, Hertz announced that the offer would be its last. It is believed that shareholders voted against the offer because Avis had announced that its counter offer of $53 per share would remain on the table.
Avis has said it will now work with Dollar Thrifty to persuade antitrust regulators that a tie up will not breach competition guidelines. The antitrust issue is believed to be one of the main reasons Dollar Thrifty’s board favoured a deal with Hertz, even though Avis has offered more money for the firm.
Dollar Thrifty has asked Avis not to pursue its bid until the authorities give approval for a deal. Avis has said it is willing to wait.
The battle for Dollar Thrifty has been going on for months. Both Hertz and Avis believe the acquisition of a budget car hire brand like Dollar will help grow revenue at a time when the business traveller is noticeably absent.
Consolidation is also seen by many as a way of ensuring future growth. In 2002, the company which owns Avis bought the Budget brand. In 2007, Enterprise’s parent acquired Alamo and National. According to IBISWorld, Enterprise and its subsidiaries now have a market share of 37 per cent; Hertz owns 20 per cent and Avis currently has 17 per cent. Dollar Thrifty has less than seven per cent.
Tags: Alamo, Avis, car hire, Dollar Thrifty, Enterprise, Hertz, National
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Tuesday, September 21st, 2010
Enterprise customers in a number of major US cities will soon be able to book the Nissan LEAF at their local dealership. Enterprise Rent-A-Car has ordered 500 of the electric vehicles and they will start entering the car hire company’s fleet in December. Initially, the vehicles will be rolled out in seven major markets where the infrastructure already exists for maintenance and charging.
In preparation for the introduction of the cars Enterprise has taken delivery of a test LEAF which it will take around selected outlets to educate staff and customers about the new technology. Lee Broughton, director of sustainability at Enterprise, said he felt there was still a great deal of mystery when it comes to electric vehicles.
Broughton added that by taking the Nissan LEAF out to the firm’s customers and employees he hoped some of that mystery would begin to evaporate. He went on to say that Enterprise was in a perfect position to show people the tremendous advantages to choosing an electric vehicle next time they rent.
On a single charge the Nissan LEAF can cover around 100 miles. This makes it an ideal commuter car. It is also the car of choice for those who wish to do their bit for the environment. The vehicle can be charged in several ways including through a customer’s home outlet, at a public outlet or at a special high-speed charging outlet.
Broughton said that with the introduction of the Nissan LEAF to the Enterprise fleet, the company was showing just how committed it was to allowing cleaner, more efficient technologies to prove themselves in the marketplace.
Tags: charging, electric vehicles, Enterprise, Enterprise Rent-A-Car, environment, Nissan leaf
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