PARK RIDGE, N.J. and BLOOMFIELD HILLS, Mich., Sept. 6, 2012 /PRNewswire/ -- The Hertz Corporation (NYSE: HTZ) and Penske Automotive Group, Inc. (NYSE: PAG) announced today the signing of an agreement for Penske Automotive Group to join Hertz's franchising network. This partnership for the Memphis, Tennessee market is part of Hertz's company-wide initiative aimed at increasing its presence in the off airport car rental markets.
"Hertz is pleased to enter into a partnership with Penske Automotive Group to encompass the franchising of the Memphis market," commented Mark P. Frissora, Chairman and Chief Executive Officer for The Hertz Corporation. "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."
The agreement calls for Penske Automotive Group, subject to the completion of closing conditions, to purchase the assets of Hertz's existing Memphis market, providing the opportunity to operate more than 15 Hertz airport and off-airport locations. Hertz will be providing Penske with a full array of services to help them rapidly expand their market presence while ensuring all products and services provided meet Hertz's high-standards of customer service."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," commented Roger Penske, Chairman and Chief Executive Officer, Penske Automotive Group. "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." The agreement with Penske is part of Hertz's strategy to transition select corporate markets to franchisee operations. The Penske partnership reaffirms Hertz's vision of being the global leader in mobility solutions. With more than 25% of market share, Hertz is the leading on-airport car rental brand. The Company has also been serving the local market and insurance replacement industry for more than 10 years and is a recognized supplier to more than 193 of the 209 largest insurance companies.