updated - October 21, 2014 Tuesday EDT
Penske Automotive Group has signed an agreement to join Hertz's franchising network, the companies said in a statement on Friday.
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. Under the agreement, Penske Automotive will buy the assets of Hertz's existing Memphis market, enabling the traded automotive retailer to operate in more than 15 Hertz airport and off-airport locations.
"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."
Hertz said it has partnered with Penske in order to transit select corporate markets to franchisee operations. 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 customer service.
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