Posts Tagged ‘Hertz’
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 According to the company it has withdrawn its $1.6 billion bid because the market conditions are unfavourable at the present time.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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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, January 18th, 2011
Customers of both Hertz and Etihad Airways will now benefit from a new alliance signed between the two to provide passengers with more comprehensive travel solutions. The three-year deal, one of the biggest to be signed by and airline and a rental vehicle supplier, is being celebrated with the launch of a new competition.
It is being opened to all those flying with the airline who choose to take advantage of the car hire solutions also available. Etihad has agreed to supply a pair of return tickets to the lucky winner to a destination either somewhere in Europe or somewhere in Australia. Thrown in will be a five-night stay at a luxury Relais & Chateaux hotel and Hertz will supply a car from its Prestige range for the duration of the trip.
As well as the possibility of the holiday of a lifetime, Etihad customers choosing to pick up a Hertz vehicle at their destination will have the opportunity of taking advantage of some great deals. For all those who rent a car, 500 extra points will go onto their Etihad Guest Miles account.
Etihad has also updated its website so that all the vehicles available to customers through Hertz are easy to see and easy to book. Customers who book over the phone will also be offered the opportunity to sort out vehicle rental at the same time.
Michel Tirade, President of Hertz, said the new alliance was exciting for both companies who are leading names in the travel industry.
Tags: airline, Etihad Airways, Guest Miles, Hertz, holiday, Michel Tirade, Relais & Chateaux, rental vehicle
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Wednesday, November 24th, 2010
Both Hertz car rental and telecoms giant BT announced yesterday that they will be adding all-electric vehicles to their fleets. BT is currently running a trial scheme of electric vans in the east London and Milton Keynes areas. If successful, the vans could be rolled out across the company’s entire 23,400-string fleet.
The Peugeot and Ford vans will initially be tested by engineers in BT’s Openreach division which looks after the company’s local networks. The vehicles, which were converted with the help of Smith Electric and Allied Electric, can reach speeds of 70mph and can run for 100 miles before they need to be recharged. The Openreach vans currently only cover an average of 60 to 65 miles a day.
Chief sustainability officer at Openreach, Ian Hill, said if successful, the new electric vans will help the company vastly reduce its carbon footprint. Last year, BT also managed to reduce its C02 emissions by a massive 20 percent by increasing fuel efficiency and cutting down on the number of journeys made. The company’s end goal is to reduce its impact on the environment by 80 percent.
At the same time, Hertz car rental company has announced a partnership with carmaker CODA Automotive to add its four-door, five-passenger CODA Sedan to its fleet in California. The all-electric CODA will join the fleet next year alongside other electric vehicles as part of the Hertz Global EV programme.
Hertz CEO Mark Frissora said the partnership would bring another element to the firm’s long-term goal to provide electric vehicles across the globe. He added that Hertz eventually wants to make electric vehicle travel an everyday reality.
Tags: all electric vehicles, BT, CODA Automotive, CODA Sedan, Hertz, Mark Frissora, Openreach
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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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Friday, October 29th, 2010
Flexicar, the Australian car sharing scheme based in Melbourne, is to begin operating under the Connect by Hertz banner. The US car rental giant is due to finalise acquisition in December, and the operation will be the company’s first venture in the Australian market. Hertz CEO and chairman, Mark P Frissora, said Connect by Hertz is key to the firm’s strategy of offering rental solutions to as wide an audience as possible.
Those who are currently members of the Flexicar scheme will find themselves plugged in to a network which includes cities around the globe like London, New York, Paris and Madrid. Senior vice president for global sales at Hertz, Robert Stuart, said the acquisition of Flexicar would give Connect an immediate customer base in residential neighbourhoods, on university campuses and in business districts.
Flexicar’s founder and CEO, Monique Conheady, will remain in charge of operations in Australia. She said that coming under the Hertz umbrella would allow the company to provide customers with access to more vehicles and improved technology.
Hertz will be able to tap into Flexicar’s brand awareness and regional presence to grow throughout Australia. Members of the Flexicar scheme who enrol in the Connect by Hertz product will be able to take advantage of keyless access to any car in the fleet by using a smart-chip enabled card.
Customers will be able to utilize hands-free audio access to a call centre representative meaning that help and advice is always available. Vehicles will also be iPod enabled and feature NeverLost navigation technology.
Tags: car sharing, connect by hertz, Flexicar, Hertz, mark p frissora, rental solutions
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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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Monday, October 4th, 2010
Car hire firm Hertz has seen its latest bid for Dollar Thrifty refused by the company’s shareholders who delivered a no vote on the takeover last Thursday. Hertz had offered stock and cash for the budget rental firm worth $50.88 per share. However this was not good enough for the majority of Dollar Thrifty’s investors.
Hertz’s board will have been disappointed by the decision because they have always supported a takeover by Hertz. Rivals Avis last week increased its offer for the company to around $53 per share. It has also included a $20 million reverse termination fee. Scott Thompson, Dollar Thrifty’s CEO, said it was time to reassess the company’s options and maximise the firm’s value for its shareholders.
Mark P Frissora, Hertz’s CEO, said the company wanted to start concentrating on its off-airport business. Before the vote, Hertz said the offer it had made would be its final one. Avis confirmed the day before Dollar Thrifty’s shareholders cast their ballots that it would remain in the running and that its offer would remain on the table.
Hertz and Avis are keen to acquire Dollar Thrifty because its main customer base is the leisure market. Since to global recession, the business traveller, the customer on whom Hertz and Avis have always concentrated their efforts, has been noticeably absent. Leisure travellers, by contrast, are still spending.
The car hire market peaked in 2007 with revenues of around $30 billion, according to market analysts IBISWorld. In 2010, revenues dropped to around $25 billion. This is encouraging rental companies to look at consolidation as a way of increasing their share of a dwindling pot.
Tags: Avis, budget rental, car hire, Dollar Thrifty, Hertz, leisure travel
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