Sept. 7, 2012—Penske Automotive Group Inc. has signed an agreement to join The Hertz Corp.’s franchising network, according to an announcement from both companies.
Under the agreement, Penske will purchase Hertz’s assets in the Memphis, Tenn., market. The partnership agreement is part of Hertz’s larger strategic effort to increase its presence in off-airport car rental markets, according to a news release_notes. It is also transitioning some of its corporate markets to franchisee operations, the release states.
"Hertz is pleased to enter into a partnership with Penske to encompass the franchising of the Memphis market," said Mark Frissora, chairman and CEO of Hertz. "Penske is a premier brand and provides a strong platform for further enhancing the local, neighborhood market. In addition to being a well-respected company, we're confident that Penske's high levels of customer service will create a seamless experience for our customers. By partnering with Penske, Hertz will be able to accelerate our growth in key U.S. markets and further strengthen our franchising network. Over time, we expect to see our franchising relationship grow into other selected markets throughout the country."
Penske is pleased, as well.
"We are confident that the commercial and operating synergies between Hertz's car rental and Penske's car dealership businesses will benefit our dealership network and Hertz's rental operations," said Roger Penske, chairman and CEO of Penske. "Hertz's ability to harness technology and deploy the latest customer service innovations, coupled with its established customer base, will bring increased value to Penske Automotive Group's local operations.”
