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Thursday, 29 April 2010 22:36

Hertz to buy Dollar Thrifty

Hertz Global Holdings has signed an agreement to buy Dollar Thrifty Automotive Group in a move officials said will help Hertz grow its global footprint and become the second largest vehicle-rental company in the U.S..

Hertz is paying approximately $1.2 billion in cash and stock to acquire Dollar Thrifty.

"Having Dollar Thrifty under the Hertz family of brands, products and services will allow us to expand our global presence, boost our market position and realize the financial benefits from substantial synergies from between the two companies," Hertz chairman and chief executive officer Mark Frissora said during a conference call Monday. 

Frissora said the company hasn't had any "officials discussions" with the Federal Trade Commission yet, but suggested that Hertz remains "very confident"  the transaction will gain approval. 

"We feel pretty good about our position there. We've certainly been advised by a great team of lawyers and so has Dollar Thrifty," he noted. "Based on that review, we feel highly confident the transaction will pass the muster. 

"I think it's fair to say we wouldn't have embarked on this transaction unless we had a high degree of confidence that it would be approved," Frissora continued.

In an official statement, Dollar Thrifty president and chief executive officer Scott Thompson talked about how the landscape of the rental market has changed over the last few years, and how joining Hertz will be beneficial.  

"Being associated with a larger company that has a broader base of revenues and access to greater technology will allow the Dollar and Thrifty brands to grow at a much more rapid pace than as a stand-alone company," Thompson noted.

"Enterprise's acquisition of Alamo and National a few years ago certainly changed the industry and our competitive position," he explained further. "Our relative size compared to the big three in the industry (Enterprise, Avis and Hertz) made an offer to join a larger company compelling."

Hillsboro County Sheriff's Office Today Arrested a number of Individuals in Staged Accident Ring

Farmers Insurance Group® cooperated with the Hillsborough County Sheriff's Office, Florida Department of Financial Services, and National Insurance Crime Bureau (NICB) in an eight-month investigation involving staged vehicle crashes and insurance fraud in Hillsboro County.


"Operation Crash for Cash" resulted in arrest warrants for 22 people, and search warrants at two medical clinics in Hillsborough County. Thirty-two suspects have already been charged with staging crashes. Detectives began to round up suspects and serve the search warrants Friday, April 23. The suspects include clinic employees, massage therapists and participants in staged crashes. The criminal charges range from Racketeering Influenced Corrupt Organization (RICO), a first-degree felony, to staging vehicles crashes.

he Alliance of Automobile Manufacturers (Alliance), Association of International Automobile Manufacturers (AIAM) and the Automotive Service Association (ASA) jointly urge Pennsylvania legislators to reject HB 2410, the so-called "Right to Repair" bill.

ASA president Ron Pyle stated, "The so-called 'Right to Repair' Act is a solution in search of a problem.  Automakers already provide affordable access to the necessary information to diagnose and service vehicles.  All automakers maintain service information websites and make factory scan tools available to the independent repair community.  The information is the same as that provided to franchised dealers and the tools are capable of performing the same functions.  By investing in proper equipment and training and subscribing to service information providers, repair shops can gain access to everything they need to repair a motor vehicle of any make or model."

In a troubled economy, where the price of collision repairs and auto insurance are rising along with the Consumer Price Index, the CAPA Part Certification program provides collision repairers with the opportunity to keep cars repairable without compromising quality. Leading collision repairers on CAPA’s Board of Directors are speaking out on why CAPA is important to them.

When CAPA certified parts are used as alternatives to increasingly expensive car company brand parts, then insurers are less likely to “total” vehicles. “If a repairable vehicle is totaled – I’ve lost business,” said Mike West, owner of Southtowne Auto Rebuild, located in Tukwila, Washington. West is a former ASA Collision Division Operations Committee member, Collision Division Director of ASA-Washington, and a member of CAPA’s Board of Directors. “Totals are bad for my customer, my shop, and for the thousands of collision repairers struggling to cope with the rising costs of operating a business.”

Shop owner, industry trainer and consultant Mike Anderson has sold his collision repair business, Wagonwork Collision Center in Alexandria, VA to Pohanka Collision Centers. Anderson says he will now focus on spending more time with family and running his consulting business and website CollisionAdvice.com.

The acquisition gives Pohanka nine shop locations in Virginia and Maryland.

 

Pennsylvania Senator John C. Rafferty Jr. (R) has introduced Senate Resolution 254 calling on the state’s insurance commissioner to investigate the practice of steering by insurers in the collision repair industry and report his findings back to the legislature.