Hertz Acquires Discount Car Rental Provider Ace Rental Cars
The Hertz Corporation (NYSE: HTZ) has forayed into the low cost car rental market in Australia and New Zealand by acquiring Ace Rental Cars, the second largest low cost car rental provider in New Zealand.
Besides allowing Hertz to enter the low cost car rental market in Australia and New Zealand the purchase will help the Company to capture a significant share of New Zealand's growing leisure sector, says Mark Frissora, Hertz Chairman and CEO.
Hertz, having value brand operations in USA, South America, Mexico, Europe and the Carribean, purchased Ace as a natural progression of Hertz' value brand strategy in the Australian market.
Tourism is a major contributor to Australia's economy and Hertz is hoping to gain high returns from the new car rental business. Ace will still continue functioning as a low cost car rental provider, alongside Hertz and Advantage. The Chief Executive of Ace, Mike Chatterley will hold his current position and role.