Hertz Corporation

Hertz Corporation
Name	Hertz Corporation
Type	Public
Industry	Automotive rental
Founded	1918
Founder	Walter L. Jacobs
Headquarters	Estero, Florida, U.S.
Area served	Worldwide
Key people	Stephen M. Scherr, Mark Frissora
Num employees	~30,000 (2023)

Hertz Corporation is an American car rental company founded in 1918 that operates a global network of retail and corporate locations. It provides vehicle rental, leasing, and mobility services across airports, cities, and digital platforms, competing with major travel and transportation firms. The company has undergone public offerings, bankruptcy reorganizations, and strategic partnerships that reshaped its market position.

History

Founded in 1918 by Walter L. Jacobs in Chicago, the company expanded under the leadership of John D. Hertz, who sold interests to General Motors and later formed associations with executives linked to General Motors and Goodyear Tire and Rubber Company. During the 1930s and 1940s, Hertz expanded alongside rental trends driven by Ford Motor Company and innovations in automotive finance introduced by institutions such as J.P. Morgan & Co. and Citigroup. Postwar growth saw franchising models influenced by practices at United Airlines and Pan American World Airways airport networks. In the 1960s and 1970s, strategic decisions intersected with mergers and acquisitions involving Radio Corporation of America executives and leasing concepts similar to those at Avis Budget Group competitors. The 1980s brought new corporate governance shaped by activists like those associated with Carl Icahn and board changes reminiscent of fights at TWA and RJR Nabisco. In the 2000s, the company pursued global expansion into markets including United Kingdom, Germany, China, and Brazil, partnering at times with multinational chains such as Sixt SE and alliances in the Automotive industry. The 2020s included a high-profile Chapter 11 filing, restructuring influenced by stakeholders such as Knighthead Capital Management and Certares Opportunities, and a subsequent relisting on the New York Stock Exchange.

Business operations

Hertz operates through airport concessions and neighborhood locations modeled after retail networks used by Walgreens Boots Alliance and McDonald's Corporation franchise systems. The company sells used vehicles via auction and retail channels resembling processes used by Copart and Manheim, and it offers corporate leasing akin to services from Enterprise Holdings and ALD Automotive. Digital platforms integrate with travel ecosystems such as Expedia Group, Booking Holdings, American Airlines, and Delta Air Lines frequent traveler programs. Fleet procurement involves partnerships with original equipment manufacturers including Toyota Motor Corporation, Ford Motor Company, Tesla, Inc., Volkswagen Group, and Hyundai Motor Company. Hertz's loyalty program and subscription offerings mirror models from Marriott International and Hilton Worldwide co-branded initiatives.

Corporate structure and ownership

The company has been publicly traded on the New York Stock Exchange and previously listed under various tickers with capital events overseen by investment banks such as Goldman Sachs, Morgan Stanley, and Lazard. Ownership has shifted among private equity firms like Clayton, Dubilier & Rice, hedge funds including Elliott Management Corporation-style activists, and strategic investors such as Carl Icahn in prior decades. Governance features a board with independent directors and executive leadership reporting to shareholders, institutional holders like Vanguard Group and BlackRock, Inc., and engagement with proxy advisory firms such as Institutional Shareholder Services. The firm's corporate filings and SEC interactions reflect compliance frameworks similar to those followed by Ford Motor Company and General Motors Company.

Fleet and services

Hertz's fleet strategy includes internal combustion vehicles, hybrids, EVs, and specialty vehicles sourced from manufacturers such as Tesla, Inc., Nissan Motor Corporation, BMW AG, Mercedes-Benz Group, and General Motors. Services include hourly and daily rentals, long-term leasing comparable to offerings from Avis Budget Group, car-sharing pilots akin to Zipcar and Getaround, and specialty programs for corporate clients similar to Enterprise Fleet Management. Ancillary services cover insurance products interoperable with providers such as Allianz, roadside assistance modeled after AAA, and loyalty partnerships with Delta Air Lines and Marriott Bonvoy. Remarketing operations utilize auction houses like ADESA and digital sales platforms paralleling Carvana and TrueCar.

Financial performance

Revenue, profitability, and cash flow have fluctuated with travel demand, fleet depreciation, and macroeconomic cycles tied to events such as the 2008 financial crisis and the COVID-19 pandemic. Capital structure decisions have involved debt financing from commercial lenders including Wells Fargo and JPMorgan Chase, asset-backed securitizations comparable to structures used by Ally Financial, and equity raises underwritten by firms similar to Citigroup. Key performance indicators have been monitored by credit rating agencies like Moody's Investors Service and S&P Global Ratings, and financial reporting aligns with standards observed at peer companies such as Avis Budget Group and Enterprise Holdings.

Controversies and legal issues

The company faced legal scrutiny over consumer complaints, billing practices, and regulatory investigations involving agencies similar to the Federal Trade Commission and state attorneys general. Notable disputes included class actions and settlement negotiations reminiscent of cases against Avis Budget Group and Enterprise Rent-A-Car, and litigation over warranty and vehicle condition claims paralleling suits involving Tesla, Inc. and other manufacturers. Bankruptcy filings prompted creditor negotiations involving firms like Silver Point Capital and Apollo Global Management, and investor litigation echoed proceedings seen with Lehman Brothers-era restructurings. Operational controversies related to data privacy, employment practices, and compliance have invoked standards applied by U.S. Securities and Exchange Commission and international regulators such as the European Commission.

Category:Car rental companies Category:Companies of the United States