Autoblog

It's a hard knock life for a Nürburgring rental car

Chris Tutor — Wed, 12 Dec 2012 10:15:00 EST

Filed under: Motorsports, Hatchback, Suzuki, Racing

Rental cars get no respect. They're abused, misused and flogged mercilessly as athletes in Rental Car Olympics. And that's just at your everyday airport rental counter. The torture gets extreme for rental cars thrashed around Germany's infamous Nürburgring.

Rent4Ring expects its customers to drive its cars around the 'Ring with enthusiasm and, in some cases, less skill than the pros. Rent4Ring just recently retired its Suzuki Swift Sport from its fleet and shared the car's two-year-plus lifetime highlights.

The little hatchback made more than 2,800 laps of the 'Ring over three seasons amounting to more than 310,000 miles driven by 457 different drivers. "Some were fast, some were slow. Some were nice to the car, a few were frankly awful," says a Rent4Ring rep.

One of those drivers pegged the tachometer at a record (for this Swift, at least) 8761 rpm. The car did about 600 hours of spirited driving, and endured 168,000 gear changes for 180 million engine revolutions.

All that lead-foot levity came at the cost of only two clutches, 27 front brake pads, three brake fluid flushes, a new wheel bearing, a new alternator and battery, 52 Toyo 888 tires and four Goodyear Eagle F1s. About 1,847 gallons of 98-octane go juice.

To the Suzuki's credit, Rent4Ring says the car was never mechanically broken or crashed. Not only does it still drive like new, it still dyno's at 133bhp. The car isn't being scrapped or stuck on a used car lot somewhere but instead was bought by a Rent4Ring customer and should get several more Nürburgring laps before it goes to that big garage in the sky.

It's a hard knock life for a Nürburgring rental car originally appeared on Autoblog on Wed, 12 Dec 2012 10:15:00 EST. Please see our terms for use of feeds.

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Major car rental companies agree not to rent or sell recalled vehicles

Sharon Silke Carty — Fri, 28 Sep 2012 13:20:00 EST

Filed under: Government/Legal, Recalls, Safety

Bowing to pressure from consumers and advocacy groups, major car rental companies have agreed to end the practice of renting cars that have been recalled for safety problems.

Legislators are introducing a bill to the Senate that would keep recalled rental cars off the road. The bill has the backing of all four major rental companies - Enterprise, which owns National and Alamo, Hertz/Advantage, Avis/Budget and Dollar/Thrifty, according to a statement released by Sen. Barbara Boxer. Those companies comprise 93 percent of the rental car market, and Hertz was the only one of the four major car rental companies to initially pledge not to rent cars under recall.

The bill will be named after Raechel and Jacqueline Houck (above, right), two young California sisters who died in 2004 in a rented Chrysler PT Cruiser that had been previously recalled for problems with the steering column. The steering fluid was prone to leaking, leaving drivers unable to control their vehicles. Enterprise Rental hadn't fixed the problem before renting the car to the Houck sisters.

"I remain very hopeful and optimistic" that the legislation will pass, Cally Houck, Raechel and Jacqueline's mother tells Autoblog. Houck has been pushing for the new legislation for the past few years. "But it's not done yet ... I remain a bit cynical, based on my history lobbying for this issue. But we do have a consensus of all the industry's major players."

Major car rental companies agree not to rent or sell recalled vehicles originally appeared on Autoblog on Fri, 28 Sep 2012 13:20:00 EST. Please see our terms for use of feeds.

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Hertz pays $2.3B for Dollar Thrifty

George Kennedy — Mon, 27 Aug 2012 18:28:00 EST

Filed under: Earnings/Financials

Car rental giant Hertz is in the process of purchasing Dollar Thrifty. The deal is said to be for $2.3 billion, according to an Associated Press report. As a result, Dollar Thrifty stock increased by seven percent in trading before the market opened today.

According to the report, Hertz has been eying its rental car rival for two years now. Additionally, Avis Budget Group was also interested in purchasing Dollar Thrifty. Hertz made the move, though, at a price of $87.50 per share, representing an eight-percent premium over Friday's closing price for the stock of $81 per share.

In a statement, Hertz Chairman and CEO Mark P. Frissora said that the buyout will give his company two more well-known brands and make the company more competitive in Europe and other international markets.

While both parties have agreed to the deal, the Federal Trade Commission must approve the acquisition. According to the report, Hertz has maintained an open line of communication with the FTC throughout the process.

Hertz has roughly 8,650 locations of various types in 150 nations throughout the globe. Dollar Thrifty has about 280 locations in the U.S. and Canada and 1,300 franchise locations worldwide. The two corporations when combined fulfills Dollar Thrifty President and CEO Scott Thompson's assertion that the "transaction is not only compelling for stockholders, but also will help broaden its reach." In addition, the deal is also projected to save Hertz $160 million each year.

Hertz pays $2.3B for Dollar Thrifty originally appeared on Autoblog on Mon, 27 Aug 2012 18:28:00 EST. Please see our terms for use of feeds.

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Ford defends ballooning fleet sales

Chris Shunk — Sat, 31 Mar 2012 16:03:00 EST

Filed under: SUV, Truck, Government/Legal, Crossover, Ford

"Fleet" is sort of a dirty word when describing vehicle sales, and the Detroit Three have traditionally been quite smitten with bulk buyers. Unfortunately fleet sales have been demonized for a reason. They can adversely affect resale values, and since fleet buyers tend to expect warehouse store pricing, they're obviously not great for the bottom line, either. But one automaker seems more than happy to sell to fleets: Ford.

Bloomberg reports that a larger percentage of Ford's overall sales are going to fleets, rising from 22 percent of in 2006 to 27 percent in 2011. Of those vehicles, 41 percent reportedly went to the likes of Hertz and Enterprise. That leaves the rest of the sales at the local, state and federal level, plus a smattering of commercial buyers. In other words, needy customers with cash in hand. And those buyers tend to want high-margin rides like trucks, crossovers and SUVs; vehicles Ford make money on.

Ford fleet director Kevin Koswick tells Bloomberg that the automaker knows what it's doing, adding "I don't see it as an issue as long as you manage your fleet and you're balanced in what you do."

Ford defends ballooning fleet sales originally appeared on Autoblog on Sat, 31 Mar 2012 16:03:00 EST. Please see our terms for use of feeds.

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Hertz urges government to oversee rental car recalls

Chris Shunk — Wed, 22 Feb 2012 09:00:00 EST

Filed under: Government/Legal, Safety

In the rental car industry, if a vehicle is on the lot it isn't making any money. The same is true for any vehicle in the shop for repairs, including vehicles that are recalled by automakers. That has created a bit of a conundrum for rental car companies, and the drive for profits can lead to vehicles getting rented that should be getting repaired.

The Detroit Bureau reports that Hertz is trying to change that. In fact, Hertz has taken the drastic step of asking the government to enact new regulations to place a priority on getting recalled vehicles repaired as soon as possible. Hertz has had to take this step because the National Highway Traffic Safety Administration currently has no authority over the industry. NHTSA has been watching the rental car companies from afar since a 2010 accident that occurred as a result of a vehicle defect that didn't get repaired because of rental demand.

The Hertz pitch may just work, as a pair of high-ranking legislatures will reportedly introduce legislation to regulate the rental car industry. It makes sense that Hertz is looking to level the playing field, since the rental company already has a policy in place that stipulates that recalled vehicles must be fixed before being rented out.

Hertz urges government to oversee rental car recalls originally appeared on Autoblog on Wed, 22 Feb 2012 09:00:00 EST. Please see our terms for use of feeds.

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Report: Car rental industry advocates for two-tier recall system

Chris Shunk — Wed, 06 Apr 2011 09:32:00 EST

Filed under: Government/Legal, Recalls, Safety

Recalls can be a big problem for car rental companies. The companies make money by renting as many vehicles in advance as possible, and an entirely booked fleet can be a recipe for profits. But what happens when there is a recall on a car or truck that is already scheduled for rental? Does the rental company call the customer and tell them that their order can no longer be fulfilled? In some cases, the rental company may want to wait until the vehicle isn't needed to get the problem looked at, which could potentially put the customer at risk.

How do you fix the problem of rental car companies failing to execute their recalls in a timely manner? The New York Times reports that the American Car Rental Association, which consists of 95 companies and all major renters with the exception of Hertz, feels a two-tier recall system would work best. Under the two-tier system, the National Highway Traffic Safety Administration and automakers would determine which recalls were serious enough that they needed to be done immediately, and which ones could wait a bit. The multi-tier approach would, in theory, force rental car companies to act quickly for serious recalls, while still maintaining the luxury of waiting for the right time to repair others. Rental companies would no doubt love such an arrangement, but safety advocates aren't so sure.

NHTSA's response is that the agency takes all recalls seriously, while other advocates like Rosemary Shahan, the president of Consumers for Auto Reliability and Safety calls the proposal "rental car roulette" and says that it will "allow rental car companies to get away with renting out vehicles that are so unsafe they are being recalled." Senator Charles Schumer (D, NY) has asked the Federal Trade Commission to look into the fact that dealers are legally forbidden to sell vehicles with open recalls while rental companies can rent cars to customers with open recalls.

[Source: The New York Times]

Report: Car rental industry advocates for two-tier recall system originally appeared on Autoblog on Wed, 06 Apr 2011 09:32:00 EST. Please see our terms for use of feeds.

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Report: Fed opens probe into rental car recall procedures

Steven J. Ewing — Tue, 23 Nov 2010 08:58:00 EST

Filed under: Recalls, Safety

According to a report from The Detroit News, the National Highway Traffic Safety Administration has opened an investigation into how quickly rental car companies repair vehicles affected by recalls. The process is simple for individual consumers - receive a recall notice, schedule an appointment with a dealership, bada-bing, bada-boom, fixed - but when it comes to the fleets of vehicles parked on rental lots, it's a much larger ordeal.

The obvious answer, according to Sharon Faulkner, executive director of the American Car Rental Association, is, "You pull those cars and you park them." Seems simple enough, but in speaking with The Detroit News, Faulkner cites that there is no law requiring rental car companies to fix vehicles before they are brought back into service. What's more, by putting large amounts of vehicles out of service, rental companies can lose money by turning away customers due to low inventory numbers.

NHTSA says that its investigation will look into "recall remedy completion by rental car companies," focusing on nearly three million vehicles from General Motors, Ford and Chrysler. This investigation covers 29 different models built between 2000 and 2010, and NHTSA says it chooses to focus on the American automakers because they make up a large percentage of rental fleets. Head over to The Detroit News to read the full report.

[Source: The Detroit News | Image: cloudsoup via Flickr]

Report: Fed opens probe into rental car recall procedures originally appeared on Autoblog on Tue, 23 Nov 2010 08:58:00 EST. Please see our terms for use of feeds.

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Coda EV models to be available through Enterprise Rent-A-Car

Jeff Glucker — Tue, 12 Oct 2010 16:39:00 EST

Filed under: Sedan, Marketing/Advertising, Technology, Electric

All-Electric Coda Sedan - Click above for high-res image gallery

Want to drive an electric car but not ready to spend the money to own one? EV manufacturer Coda has the perfect solution for you. Coda has teamed up with Enterprise Rent-A-Car to place its all-electric sedan into the rental car company's fleet. The plan is to introduce about 100 sedans across various Enterprise locations throughout 2011.

The Coda Sedan is the company's first vehicle and it will be launched in the coming months. It's a five-passenger sedan with a full-size trunk and a cruising range of between 90 and 120 miles per charge. Coda is utilizing a 6.6 kW on-board charging system which requires six hours for a full charge, however, the system can provide a 40-mile cruising range with just a two hour charging period.

In addition to the Coda Sedan models entering the Enterprise rental fleet, the rental company will serve as a loaner car system for Coda owners. If a Coda vehicle requires service, an Enterprise rental car will be made available during the time the owner's Coda vehicle is in the shop. Read more in the official press release after the jump.

Gallery: All-Electric Coda Sedan

[Source: Coda]

Continue reading Coda EV models to be available through Enterprise Rent-A-Car

Coda EV models to be available through Enterprise Rent-A-Car originally appeared on Autoblog on Tue, 12 Oct 2010 16:39:00 EST. Please see our terms for use of feeds.

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BREAKING: Hertz reportedly buying Dollar Thrifty car rental rival for $1.17B

Zach Bowman — Mon, 26 Apr 2010 10:00:00 EST

Filed under: Earnings/Financials

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]

BREAKING: Hertz reportedly buying Dollar Thrifty car rental rival for $1.17B originally appeared on Autoblog on Mon, 26 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

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Video: Report compares rental cars to public restrooms

Steven J. Ewing — Thu, 04 Mar 2010 16:27:00 EST

Filed under: Etc., Safety, Videos

Just how clean are rental cars? - Click above to watch the video after the jump

Rental cars don't have easy lives. They can be abused and flogged by nearly anyone who wants one, and most of the people who drive these vehicles have the "it's not my car - who cares" mentality. However, a new study from the folks at The Today Show takes a deeper look into the overall cleanliness of these vehicles, pointing out some really interesting facts about the levels of bacteria found on the most commonly touched surfaces (steering wheel, gear shift, door handles, etc.).

The results are slightly shocking, and true as they may be, we find it a little odd that the reporters have compared the sanitary levels of these cars to that of a public restroom. We'll agree that it's absolutely unacceptable to find food crumbs, sticky messes, and even vomit (yes, vomit) in a ready-for-duty rental car, but we must remember that sharing germs is an inherit risk when you use anything that's moved around to hundreds of people each year. It's an interesting study nonetheless, and you can see the full details for yourself by watching the video after the jump.

[Source: MSNBC]

Continue reading Video: Report compares rental cars to public restrooms

Video: Report compares rental cars to public restrooms originally appeared on Autoblog on Thu, 04 Mar 2010 16:27:00 EST. Please see our terms for use of feeds.

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Hyundai and Kia seen using fleets to boost sales numbers

Michael Harley — Mon, 13 Apr 2009 16:30:00 EST

Filed under: Car Buying, Plants/Manufacturing, Hyundai, Kia, Earnings/Financials

While most automakers are reporting double-digit drops in sales each month, Hyundai and Kia continue to swim against the current and maintain (or even increase) units sold. According to Automotive News, a significant part of their success is attributable to fleet sales - large numbers of cars going directly into rental and corporate fleets. During the first quarter of 2009 alone, more than 33 percent of Hyundai's first quarter sales of 95,854 units were fleet related. Rental car sales represented nearly 35 percent of Kia's sales during the same period.

There is nothing inherently wrong with fleet sales, but many in the industry see them as a historically-abused method to inflate numbers, an inaccurate reflection of actual showroom traffic, and a potential liability for residual values. "We accept the criticism that our fleet is up," Hyundai Motor America's sales boss Dave Zuchowski said when he addressed the issue. "But our retail share also is up and outperformed the industry."

Utilized heavily by the Detroit Three in the past, fleet sales are a double-edged sword. Automakers get a strong boost in sales when the vehicles are delivered, but then pay heavy consequences with an oversaturated segment when the cars are dumped back into the used car market. It will be interesting to see how the Korean sister brands will address this repercussion in the near future.

[Source: Automotive News - subs. req'd]

Hyundai and Kia seen using fleets to boost sales numbers originally appeared on Autoblog on Mon, 13 Apr 2009 16:30:00 EST. Please see our terms for use of feeds.

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Daimler's Car2Go program coming to Austin, Texas this fall

Jonathon Ramsey — Thu, 02 Apr 2009 08:28:00 EST

Filed under: Coupe, Budget, Hatchback, Daimler, Smart, Lifestyle

Last October we advised you not to hold your breath for Daimler's Car2Go program to come to America. You can breathe again. If you live in Austin, Texas you'll be able to rent a mild hybrid Smart ForTwo by the minute this fall. Austin was chosen because of its university population and its concern for the environment.

Car2Go makes its fleet available on-demand, with a clear price structure, and you can keep the car as long as you wish. Those in the program access the vehicles by swiping a tag on their driver's licenses over a card reader on the car. As with the pilot program in Ulm, Germany the service will start in Austin with an initial fleet, expected to consist of around 200 Smarts that will be available to city employees first and then expand to public use at the conclusion of a trial period.

Gallery: smart fortwo in Texas and Germany

[Source: Canadian Driver]

Daimler's Car2Go program coming to Austin, Texas this fall originally appeared on Autoblog on Thu, 02 Apr 2009 08:28:00 EST. Please see our terms for use of feeds.

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Rental fleet sales down last year, 2009 will be worse

Jonathon Ramsey — Sat, 10 Jan 2009 14:00:00 EST

Filed under: Trends, Chrysler, Ford, GM, Earnings/Financials

Last summer, it was the Detroit Three that were restraining themselves from dumping cars into the gaping maw of fleet sales just to boost the bottom line. Turns out they had some help with that discipline: Due to last year's events, rental car fleets shrunk by 400,000 units from 2007 to 2008. As we begin 2009, rental car companies have declared they will be trimming their fleet orders and curbing the number of vehicles they keep on hand even further.

Rental car companies have been thrown under a number of buses as of late. They can't borrow money to finance purchases; the recession has hammered the travel industry; wholesale used vehicle prices are falling (making rental car fleets less valuable); and besides that, car dealers can't get the money to buy the retired rental cars anyway, which subtracts yet another revenue stream.

Rental companies have been good for something like 15% of sales from General Motors, Ford, and Chrysler. But not this year: Enterprise, which also buys for National and Alamo, will buy half the number of cars it did last year, and they'll keep those cars a couple of months longer. Hertz, Dollar, and Thrifty also said they will buy fewer cars and work them longer. The automakers have doubled incentives to encourage sales, but there are simply no teeth left in the rental business with which to bite.

Thus, don't be surprised to find a few more stains on the seats and a few more miles on the clock the next time you find yourself at the wheel of a rental car.

[Source: Automotive News, Sub Req.]

Rental fleet sales down last year, 2009 will be worse originally appeared on Autoblog on Sat, 10 Jan 2009 14:00:00 EST. Please see our terms for use of feeds.

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Steve McQueen's stolen Cadillac recovered

Jonathon Ramsey — Fri, 26 Dec 2008 08:59:00 EST

Filed under: Etc., Cadillac, Celebrities

A busted car theft ring has turned up a vintage Cadillac once owned by one of the Magnificent Seven. The five-finger-discount drivers out of Colorado, headed by Jeffrey Earle Piper, would steal expensive rental cars, change their VIN numbers and "sell" them. The new "owner", who was in on the whole thing, would then report "his" car stolen and collect on the insurance policy. One of the cars found among the loot: a $133,000 1959 Cadillac - looks like a Series 62 convertible - that once belonged to Steve McQueen. It's other claim to fame: a guest spot on the TV show MacGuyver. The mystery we're still trying to solve is which one of its owners put the Yeti pelt over the driver's seat? Hat tip to Derek!

[Source: Denver Post]

Steve McQueen's stolen Cadillac recovered originally appeared on Autoblog on Fri, 26 Dec 2008 08:59:00 EST. Please see our terms for use of feeds.

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Imports taking up the slack in fleet sales

Frank Filipponio — Mon, 23 Jul 2007 17:56:00 EST

Filed under: Etc.

OK, this seems like a no-brainer. As GM and Ford have gradually pulled back from the low-margin fleet sales market, import fleet sales have surged. After all, somebody has to keep the rental car lots filled. It's mostly been the mainline Asian automakers that have stepped in to fill the void. Toyota, Nissan, Mazda and Kia have all increased their corporate sales of cars and trucks, but they still remain bit players overall. About 11 percent of U.S. import brand sales are to fleets so far this year. That is up from just 8% last year. In comparison, the domestics sell 31 percent of their overall production to corporate customers. Although some fleet sales can be quite lucrative, the vast majority of rental car sales are end-of-year surplus that is heavily discounted to move.

[Source: Automotive News - sub. req.]

Imports taking up the slack in fleet sales originally appeared on Autoblog on Mon, 23 Jul 2007 17:56:00 EST. Please see our terms for use of feeds.

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The Big-O of used car sales: Enterprise teams up with Overstock.com

Frank Filipponio — Tue, 20 Mar 2007 16:34:00 EST

Filed under: Car Buying

Although she might not be the spokewoman for Overstock.com any longer, Sabine Ehrenfeld is one minor celebrity we actively look for an excuse to mention. Second only to Nürburg-queen Sabine Schmitz, Overstock.com's Sabine Ehrenfeld is that super sexy, multi-talented spokesperson that reintroduced us to the Big-O a Christmas or two ago.

Well, that was sort of car-related, but there really is another reason to bring her up. It seems the online clearinghouse for seemingly everything else is getting deeper into the automotive market. Overstock has reportedly signed an agreement with rental giant Enterprise to clear out last year's inventory of fleet vehicles. With 15 million users a day, Overstock represents a huge built-in audience that Enterprise Rent-A-Car has apparently decided might be interested in their cars a,s well. As with other automotive offerings, Overstock will essentially act as a storefront rather than as an actual dealer. Maybe Schmitz will be interested in the spokesperson vacancy.

[Source: Winding Road]

The Big-O of used car sales: Enterprise teams up with Overstock.com originally appeared on Autoblog on Tue, 20 Mar 2007 16:34:00 EST. Please see our terms for use of feeds.

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A dream fulfilled: Lotus Elise rentals are coming

Damon Lavrinc — Sat, 16 Sep 2006 10:08:00 EST

Filed under: Etc., Lotus

Yesterday, our vision of a perfect world took a small step towards reality, when Lotus announced that they would make the Elise available to select rental car agencies. The decision was made in response to the unbridled affection shown by the U.S. market for the sub-ton roadster, along with the number of requests the company received for such a service.

The press release explains that the Elise will be classified as an exotic, with all the pomp, circumstance, charges, waivers, and hefty insurance premiums that go along with the designation. The selected rental agencies weren't specified, but one could safely assume that your local Hertz, Budget, Avis or Joe's Rent-A-Wreck won't make the short list. Due to limited supply, the first batch of Elise's will only be available in Arizona, California, Florida, Nevada and... wait for it, Pennsylvania (?). Other states will be added as supply increases, assuming the loss ratio doesn't go through the ceiling (or, more aptly, the racetrack tire barrier).

We would ask that the first reader to find an Elise available to send us a tip, so we can do a "follow up" on the story.

A dream fulfilled: Lotus Elise rentals are coming originally appeared on Autoblog on Sat, 16 Sep 2006 10:08:00 EST. Please see our terms for use of feeds.

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