Detroit Bureau on Twitter

Posts Tagged ‘hertz’

Use of Car-Sharing Programs Set for 550% Jump

New study predicts 12 mil will use services by 2020.

by on Sep.19, 2013

When they need a car, a growing number of Millennials are turning to carsharing services.

If you want to get a hint about the potential for car-sharing programs consider that Hertz, Avis and other traditional rent-a-car firms have purchased pioneers in the short-term rental market, such as ZipCar, over the last couple years.

And, apparently, such moves will be well rewarded, a new study predicting that the number of members subscribing to car-sharing services will surge by more than 550% before the end of this decade – from the current 2.3 million to more than 12 million.

A News Source Worth Sharing!

Global revenues are expected to grow even more rapidly, forecasts Navigant Research, jumping from an anticipated $1 billion this year to $6.2 billion in 2020.

Car-sharing services offer an alternative to the traditional vehicle rental approach by targeting those who might have need of a vehicle for as little as an hour, rather than those who want one for a day or more.  In most cases, customers access vehicles at unmanned lots or even at reserved, street-side parking spots.


Penske Pairs Up With Hertz

Follows Hertz acquisition of Dollar Thrifty.

by on Sep.07, 2012

A force to be reckoned with, Roger Penske expands his presence in the car rental business.

Hertz, the rental car giant, has entered into an alliance with Penske Automotive Group of Bloomfield Hills, which could lead to PAG picking up more Hertz franchises across the U.S.

Hertz chairman and chief executive officer Mark P. Frissora said the Penske partnership fits nicely into Hertz’s vision of being the global leader in mobility solutions.   The rental giant last month announced it would purchase rival Dollar Thrifty for $2.3 billion.

We Brake for News!

With more than 25% 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.


Hertz Asks for Federal Oversight of Recalled Cars

Rental industry under fire for potential safety lapses.

by on Feb.21, 2012

Hertz has agreed to support legislation that would require rental vehicles to be repaired before being returned to rent-a-car lots.

With the industry facing criticism for ongoing safety lapses, rent-a-car company Hertz is calling for government oversight to ensure that recalled cars are fixed before being rented to consumers.

Two senior lawmakers say they will introduce legislation to do just that in the coming weeks.

Though rental firms like Hertz and Enterprise, the largest in the field, are the single biggest purchasers of new cars in the U.S. they are not subject to regulation by the National Highway Traffic Safety Administration, which oversees automotive manufacturers.  NHTSA can block the manufacture and sale of vehicles experiencing safety defects but it is currently powerless to prevent them from being rented out.

News Now!

Nonetheless, NHTSA has been investigating the rental industry for more than a year following revelation that rental companies have frequently allowed vehicles subject to safety recalls to remain on rental lots.  As first reported in July 2010, officials with Enterprise, Alamo and National acknowledged in court they would delay making safety-related repairs, in one manager’s words, “when demand called.”


Feds Launch Probe Into Rental Car Recall Delays

Investigation triggered by evidence some firms regularly delay repairs on defective vehicles.

by on Nov.22, 2010

Rental firm accused of delaying repairs on recalled vehicles if they're in demand.

Federal regulators want to know whether daily rent-a-car companies may be risking the lives of their customers by delaying repairs for known safety problems in order to keep potentially defective vehicles in circulation.

The investigation comes as several rental car firms defend their actions in court.  As first reported, last July, officials with Enterprise, Alamo and National have acknowledged in court delaying safety-related repairs, in one manager’s words, “when demand called.”

Your Trusted Source! Click Here to Subscribe!

But industry officials are denying such allegations and, if anything, are blaming automakers for failing to properly notify fleet managers of pending recalls.

The National Highway Traffic Safety Administration’s new investigation is specifically examining how major rental car companies have handled 29 individual recalls ordered by Detroit’s Big Three automakers.  In all, those recalls involved 3 million vehicles sold to rental companies.


Rent-a-Car Companies Risking Lives With Recalled Cars?

Enterprise, National, Alamo admit risky policy in court case.

by on Jul.07, 2010

Enterprise acknowledges renting a car that should've gone back for recall repairs.

One of the nation’s largest rental-car companies has acknowledged in court that it regularly rents vehicles even though it is aware that they are covered by a safety recall and should be first taken in for repair.

That news came out in a California court case involving the death of two women whose rental car caught fire after a collision with a tractor trailer.  The PT Cruiser they were provided by Enterprise had, in fact, previously been rented out three times after the company had received a recall notice from Chrysler.

“When demand called, we rented out recalled vehicles, it happened, I won’t lie,” said Mark Matias, who previously served as an Enterprise area manager in San Francisco, near where the accident occurred that claims the lives of 24-year-old Raechel Houck and her sister, Jacquie, 20.

While the case was in discovery, Enterprise Manager Thomas Moulton was asked, “Did you ever consider the possibility that Enterprise should not rent cars to the public after they’ve received recall notices from the manufacturer?” Moulton, according to the ABC Report, responded, “No.”

Enterprising News!

During the trial, reports ABC News, Enterprise tried to argue that the accident was the result of the driver, Raechel, being “suicidal or on drugs.”  But two weeks before trial, noted the Houck family’s attorney, Larry Grassini, the company “freely admitted that they were the only cause of the deaths.”