Hertz is the world's second largest car rental company, with 1,900 locations in the United States and 5,100 worldwide behind Enterprise, but is the largest general use car rental company in the world.
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Hertz is the world's second largest car rental company, with 1,900 locations in the United States and 5,100 worldwide behind Enterprise, but is the largest general use car rental company in the world. The company primarily operates in North America, France and Spain and is headquartered in Park Ridge, New Jersey with about 32,100 employees. Hertz also maintains a heavy equipment rental division known as the Hertz Equipment Rental Corporation, often referred to as HERC. HERC has nearly 300 branches throughout the United States, Canada, Spain, and France. The company also operates a few other subsidiaries and divisions including Hertz Local Edition, which provides local and insurance replacement rentals. Also, the company maintains Hertz Truck & Van Rental, which helps customers move their belongings across town or to make larger deliveries.
The company began in 1918 by Walter L. Jacobs, who started a car rental operation in Chicago with a dozen Model Ts. In 1923, Jacobs sold his operation to John D. Hertz, who at the time was president of Yellow Cab and Yellow Truck and Coach Manufacturing Company. He renamed it the "Hertz Drive-Ur-Self System" and passed the company through a number of hands, including General Motors, RCA, and United Airlines. Hertz was traded on the New York Stock Exchange under the symbol “HRZ”, as a public company and was traded until the purchase of outstanding stock by Ford Motor Company.
From 1994 until 2005, Hertz was a wholly owned subsidiary of Ford Motor Company. On June 13, 2005, Ford issued a notice that Hertz would be spun off in an initial public offering. Furthermore, September 13th of the same year brought an announcement that it was to be sold to a private equity group, which was composed of Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity, for a total of $5.6 billion in cash and debt acquisition. The sale was finally completed later that year on December 22, 2005. The private equity group took Hertz public and made it available once again on the New York Stock Exchange, under the symbol “HTZ”. This was established on November 16, 2006.
Because of a past affiliation with Ford, the rental fleets at most Hertz locations consist of Fords and Ford brands such as Mazda, Mercury and Lincoln. However, it is not uncommon, however, to find Hertz rental cars from non-Ford companies such as Toyota, Hyundai, Kia and General Motors.
The company operates under two significant business segments: car rental and equipment rental. Additionally, a third segment, corporate and other, includes general corporate expenses, as well as other business activities, such as third-party claim management services. The company also offers industrial and construction equipment rental. In the car rental business segment, the company accepts reservations for the rental of cars at approximately 7,600 locations in 148 countries and has its airport operations in over 69 major airports in Europe.
In the company's equipment rental business segment, Hertz rents equipment through over 340 branches in the US, France and Spain, as well as through international licensees. The company operates domestically through its wholly owned subsidiary, Hertz Equipment Rental and internationally through various subsidiaries. HERC maintains a significant market share in the North American industrial and construction equipment rental market.
In addition to car rentals and licensee fees, the company generates revenues from reimbursements by customers of airport concession fees and vehicle licensing costs; fueling charges; and charges for ancillary customer products and services such as supplemental equipment like child seats and ski racks, loss or collision damage waiver, liability insurance and personal accident/effects coverage, Hertz NeverLost navigation system and satellite radios.
HERC's principal business is the rental of industrial and construction equipment. HERC rents a range of equipment; major categories include earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, pumps, small tools, compaction equipment and construction-related trucks. Hertz also maintains automobile maintenance centers at certain airports and in certain urban and suburban areas, providing maintenance facilities for its rental fleet. Many of these facilities, which include sophisticated car diagnostic and repair equipment, are accepted by automobile manufacturers as being eligible to perform and receive reimbursement for warranty work. Collision damage and major repairs are generally performed by independent contractors.
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