• Apr 26, 2010
Good news, rental car fans – Hertz has managed to expand its operations by over 1,500 locations. The company has reportedly just agreed to snatch up Dollar Thrifty car rental in a $1.17 billion deal that included both cash and Hertz stock. According to USA Today, that figure values Dollar Thrifty shares at a 5.5 percent premium over what the company's stock had been trading for recently.

Once the deal goes through, Dollar Thrifty will be completely owned by Hertz, which means we'll likely be seeing a lot more yellow at rental counters across the country. Hertz also said that it has its eye on around $180 million in potential cost cuts as a result of the merger. Odds are that means nixing locations where Dollar Thrifty and Hertz had previously competed against one another.

While that's all good news for Hertz, rental customers will also likely benefit from a larger rental network. Who knows, maybe we'll see a few more rent-a-racers crop up along the way, too.

[Source: USA Today]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 33 Comments
      • 4 Years Ago
      It's very possible they could just rebrand Thrifty since Hertz already has the higher end rentals covered. If they tried to just convert Thrifty straight to Hertz it would actually cost them a decent amount of money.

      Really, I don't care either way because I own a Chevy so if my car was ever in the shop I'd get a car from the dealership or Enterprise.
      • 4 Years Ago
      Hertz is ALWAYS the most expensive. This will certainly hurt the consumer.
      • 4 Years Ago
      How does combining two companies into one result in a "larger rental network?" It will actually mean LESS choice for consumers.
        • 4 Years Ago
        Yet another example of Autoblog's authors' incompetence when it comes to financial/business issue.
        1) "...seeing a lot more yellow"???? If you read just the USA Today article, it clearly spelled out Hertz will expand it's leisure/travel segment. This, plus past history of this sort of M&A, point toward keeping separate brands alive, but combining back room operations to save cost. (witness Avis/Budget, Alamo/National, etc)
        2) good for consumers??? Really? You don't need to have an MBA, heck....high school diploma, to know that LESS competition = higher cost to consumers. Just because they may operate different brands, it does not mean overall rental price will not increase.
        • 4 Years Ago
        @John, I appreciate your attempt to sound intelligent, but considering the fact that your attempt at sounding educated and well-humored has failed like the handling abilities of a '79 Lada, I would try to focus more on the facts and argument I have presented.

        That or you could just accept you were wrong and change your opinion accordingly.
        • 4 Years Ago
        So the Poobah has managed to combine the 19th century, whale oil-powered lamps and snarling bashing of "useless leftists" into one response about Hertz car rental. Congratulations for having the most surreal comment of the day!
        • 4 Years Ago
        Wait, was that '79 Lada the whale oil-powered one?
        • 4 Years Ago
        poobah:
        you are so full of the your first 3-letters. What RELEVANT facts and arguments did you present that were so compelling? Whale oil? Seriously? I am all for constructive conflicts and arguments, but you came in high and mighty with b.s. stuff and called them relevant facts.
        I've been involved in a few M&A with competing companies myself...in each case the transaction would not have gone through without factoring in structural cost reduction and potential revenue enhancements. I'd be the first to say, it's not anything common sense wouldn't have told you.

        John: nice touch on the whale oil powered Lada!
        • 4 Years Ago
        Another really great example is Wal-Mart, whose size and rapid expansion have put many competitor retailers into bankruptcy (i.e. Sears), but the result for consumers were the lowest prices in the industry, and a tiered market resulting from retailers who moved upmarket to stay competitive (i.e. Target).

        Isn't business/econ fun when it's commented on by people who know what they're talking about?
      • 4 Years Ago
      How is this possibly a good thing??

      Oh great, LESS competition! I'm sure prices will come down for consumers when Hertz is the only game in town! :rolleyes:
      • 4 Years Ago
      Hertz...what you feel like after you realized how much you overspend on a POS Aveo that smells like feet and cheese. I once rented (in 2008) from Payless Rent-A-Car for an 2008 Altima SL for a week and it cost less than a "Small Car" from Hertz. It was a deal and a half!
      • 4 Years Ago
      This will make or break Hertz, who already has mucho debt...we shall see...
      • 4 Years Ago
      "Seeing a lot more yellow"? It's more like Hertz will be seeing a lot more green, and customers will be seeing red.
      • 4 Years Ago
      Business does not like competition.
      • 4 Years Ago
      As pretty much everyone has said above, this is a very uninformed post. Hertz is basically gobbling up their low-cost competition. I always use Hertz for business and they are a great company, but you pay handily. This merger is horrible news for the average family that wants to rent a car on a budget, not that Hertz really cares. They want to rent to corporate account holders with expense accounts.
      • 4 Years Ago
      Yay oligopoly pricing!

      Out of the three car blogs I read (Autoblog, Jalopnik, and TTAC), Autoblog has come the closest to the classical "re-write a press release" editorial style.
      • 4 Years Ago
      You're completely missing my point, and this has absolutely nothing to do with socialism. NOTHING.

      Hertz gobbling up rental car companies is NOT a good
      thing. It's not good for those who are about to lose their jobs,
      it's not good for consumers because of they're decreasing
      competition.
      • 4 Years Ago
      Hertz is almost always the most expensive option.... arg
        • 4 Years Ago
        Indeed. Last month in Miami, same rental through Dollar cost roughly half than with Hertz. If Dollar-Thrifty disappears from the market along with the cheap prices, I think that there will be a new player in town shortly afterwards. We'll see.
    • Load More Comments