Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Hertz Taking 20% Stake in China Auto Rental

Global car rental leader Hertz (NYSE: HTZ  ) will acquire a 20% stake and a seat on the board of directors of China Auto Rental, China's domestic market leader in short- and long-term car rentals, Hertz announced today.

Although financial details were not released, China Auto Rental will be granted an initial license for five years that will allow it to operate on behalf of Hertz in China. CAR will be required to develop a network of full-service Hertz locations in key cities to complement CAR's locations. Hertz will provide CAR with access to services including operational expertise, reservation capabilities, and fleet management efficiencies. Hertz and CAR will be co-branded at their locations.

Noting that China Auto Rental has the largest domestic rental footprint, with 700 locations in 66 cities, for a fleet of 50,000 vehicles, some four times larger than its nearest competitor, Hertz chairman and CEO Mark P. Frissora said, "It's a perfect fit for Hertz to partner with the largest and most recognized car rental company in China."

He further noted CAR has enjoyed a 200% annual growth rate between 2009 and 2012, which is six times greater than the growth of the overall market during the same period. It's forecast it will achieve better than 50% annual growth through 2016, which is more than triple the projected growth rate of the market. 

In 2012, China's international travel expenditures exceeded $100 billion, tops in the world, according to Hertz, and its domestic rental business is expected to grow more than 15% annually through 2016.

Hertz operates its car rental business through the Hertz, Dollar, and Thrifty brands from approximately 10,400 corporate, licensee, and franchisee locations around the world.


Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 16, 2013, at 4:11 PM, decoupodge wrote:

    renting a car in China is a scary thought. They have some of the worlds worst drivers since they are so rude and impatient. Plus the rules of the road are so unclear you won't know what rules are enforced and which are not. The risk of your rental coming back dinged up is way too high.

  • Report this Comment On April 16, 2013, at 4:11 PM, mastedon2 wrote:

    And once the chinese govt gets their hands on Hertz, it will all be over.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2366430, ~/Articles/ArticleHandler.aspx, 9/25/2016 10:12:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
HTZ $46.50 Down -1.31 -2.74%
Hertz Global Holdi… CAPS Rating: ***