Hertz (company)

Hertz (company)
Name	Hertz Global Holdings, Inc.
Type	Public
Industry	Car rental, Automotive industry, Travel
Founded	1918
Founder	Walter L. Jacobs
Headquarters	Estero, Florida, United States
Area served	Worldwide
Key people	Stephen M. Scherr, Mark P. Frissora, Kathryn V. Marinello
Products	Vehicle rental, Fleet leasing, Used car sales, Mobility services
Revenue	US$ (varies annually)
Num employees	(varies)

Hertz (company) is a multinational vehicle rental corporation operating passenger and commercial vehicle hire services, fleet management, and vehicle sales. Founded in 1918, the firm expanded into a global network serving airports, travel hubs, and urban locations across the Americas, Europe, Asia, Africa, and Australia. Hertz has been a prominent participant in automotive industry consolidation, strategic alliances with airlines and hotel chains, and public markets with periods as a private and publicly traded entity.

History

Hertz traces its origins to Walter L. Jacobs' establishment in Chicago in 1918 and early growth through acquisition and franchising that connected to the expansion of United States air travel and the rise of automobile tourism in the interwar period. In 1923, the company was acquired by John D. Hertz, an entrepreneur associated with Chicago taxicab operations and the Yellow Cab Company, whose name became eponymous with the brand; subsequent decades saw interactions with corporate actors such as General Motors and investment firms that reshaped ownership. Post‑World War II expansion paralleled the growth of Pan American World Airways routes and the North American suburbanization trend, while global entry in the late 20th century aligned with the deregulation movements that affected transportation sectors.

In the 1990s and 2000s Hertz engaged in mergers and acquisitions, forming relationships with rental competitors and automotive original equipment manufacturers such as Ford Motor Company and Toyota Motor Corporation to source fleet vehicles. The 2005 acquisition by a consortium led by Ford Motor Company and later private equity transactions involved players like Clayton, Dubilier & Rice and Bain Capital. The company returned to public markets with an initial public offering influenced by macroeconomic cycles, including the 2008 financial crisis and the COVID‑19 pandemic, which precipitated a high‑profile bankruptcy filing and restructuring that attracted creditor negotiations involving entities such as Carl Icahn and large institutional investors.

Corporate structure and operations

Hertz operates through regional subsidiaries and franchise agreements spanning North America, Europe, Latin America, Asia-Pacific, and Africa. Corporate governance has featured a board with directors experienced in transportation, finance, and retail sectors; chief executives with prior roles at firms like General Motors and Avis Budget Group have led strategic pivots. The company maintains strategic partnerships and codeshare‑style arrangements with airline loyalty programs from carriers such as Delta Air Lines, United Airlines, and American Airlines, and distribution agreements with travel intermediaries including Expedia Group and Booking Holdings.

Operationally, Hertz organizes airport concessions, off‑airport retail locations, corporate accounts, and peer relationships with automotive manufacturers for vehicle procurement and remarketing. The firm has utilized captive and external fleet financing from banks and leasing companies, negotiating terms with global financial institutions like JPMorgan Chase and Bank of America. Franchisees and regional licensees in markets such as United Kingdom, Germany, Australia, and Brazil manage local operations under international standards and brand guidelines.

Fleet and services

The Hertz fleet historically comprised sedans, SUVs, vans, trucks, and specialty vehicles sourced from manufacturers including Ford Motor Company, General Motors, Toyota Motor Corporation, Nissan Motor Company, and Volkswagen Group. Product lines evolved to include the Hertz Gold Plus Rewards program, loyalty benefits tied to frequent flyers of carriers like British Airways and Lufthansa, and segmented offerings such as the Prestige, Dream Cars, and Green collections. Ancillary services extended to long‑term leasing, commercial fleet management for corporate clients, and a used vehicle sales channel operating through agency auctions and retail lots, interacting with automotive remarketers like Manheim and institutional buyers.

In response to market demand, Hertz introduced mobility initiatives such as carsharing pilots and partnerships with ride‑hailing platforms; these efforts drew on technology vendors and platforms developed by companies like Avis Budget Group competitors and software firms in the mobility technology space. Airport concessions complied with regulatory authorities including airport authorities in cities such as New York City, Los Angeles, and London.

Financial performance and controversies

Hertz’s financial history includes periods of strong revenue growth and profitability alongside episodes of debt restructuring, leveraged buyouts, and market volatility. The 2008 recession, fluctuating used‑car prices, and fuel price shocks affected operating margins, while the COVID‑19 pandemic caused dramatic declines in travel demand, leading to a 2020 Chapter 11 filing in the United States bankruptcy court. The bankruptcy and subsequent restructuring generated litigation and creditor disputes involving hedge funds and institutional creditors, and prompted scrutiny from regulators and shareholders, including proxy contests and legal actions referencing securities law principles and fiduciary duties.

Controversies have included fines and investigations by consumer protection agencies and transport regulators in jurisdictions like California and United Kingdom over billing practices, vehicle condition disclosures, and data security incidents. High‑profile shareholder activists and creditors, including parties such as Carl Icahn in earlier decades, influenced governance and asset disposition decisions. Financial reporting adjustments, executive turnover, and public scrutiny by media outlets and financial analysts shaped perceptions of corporate stewardship and risk management.

Sustainability and technology initiatives

Hertz has pursued fleet electrification initiatives and partnerships to acquire battery‑electric vehicles from manufacturers including Tesla, Inc., General Motors, and BYD Auto for deployments in major markets. Sustainability reporting aligned with frameworks promoted by standards setters and investors in New York Stock Exchange‑listed companies, and the company announced targets to reduce greenhouse gas emissions in fleet operations, working with charging infrastructure providers and utilities in collaboration with entities such as ChargePoint and regional energy companies.

Technology investments covered digital booking platforms, telematics, connected vehicle services, and data analytics leveraging vendors and standards from the software and telecommunications industries. Pilot programs tested autonomous vehicle integrations with research partners and academic institutions in regions like California and Arizona, while cybersecurity and data privacy compliance referenced regulatory regimes in jurisdictions such as European Union and United States statutes.

Category:Car rental companies