Dollar Thrifty Automotive Group ("DTAG"), a business unit of Hertz Global Holdings, Inc. (HTZ), announced that it has added 116 locations all over Germany, in a move to strengthen its existing channels in the country.
These new locations, which will benefit German car rental customers, commenced operations in most regions of the country as of Jan 1, 2015. Dollar Thrifty's recent airport launch, coupled with the introduction of several downtown branches, solidifies the brand's presence in key German locations like Berlin, Munich, Frankfurt, Cologne and Dusseldorf. Further, the brand has also launched in famous tourist spots including Dresden and Nuremberg.
Dollar Thrifty has been focused on international expansion since a long time now. The brand had declared its expansion plans in Europe back in Feb 2013. Its growth strategy was focused on launching in many European countries. Expanding in the continent has always been on the agenda as is evident from the fact that the brand has marked its presence in more than 320 destinations in Europe.
Dollar Thrifty's latest entry into Germany falls in line with the strategy of strengthening the brand's global presence as the country is not only one of the most important outbound markets worldwide, but also Europe's largest car rental market. Hence, we believe that this move is likely to enhance Dollar Thrifty's global face by increasing value for customers.
In a separate press release, Hertz named Jeffrey (Jeff) T. Foland as the company's Senior Executive Vice President and Chief Revenue Officer. Foland, whose appointment will take effect in late January, will be responsible for all operations related to international car rental marketing, pricing, sales and revenue functions.
Foland was working with United Airlines for 10 years prior to this, assuming the roles of Executive Vice President, Chief Marketing and Strategy Officer. Earlier, he served ZS Associates, an international marketing and sales consulting firm, as Principal. Foland also held various key positions at Detroit Diesel Corporation and General Motors, Allison Gas Turbine Division.
Management believes that Foland's able leadership skills and profound experience in marketing, sales and strategy are likely to help the company exploit revenue opportunities and take it forward on its path of global expansion.
However, Hertz, which competes with Avis Budget Group, Inc. (CAR), currently carries a Zacks Rank #5 (Strong Sell). This is because the company recently announced that due to the accounting errors identified in the financial results for 2011, it needs to restate its financial statements for 2012 and 2013, as the ongoing accounting review will have an impact on them.
Further, Hertz stated that due to these accounting activities, it will be unable to file any updated statements before at least mid-2015 and that there is no guarantee of the process being completed by then.
However, better-ranked stocks in the same industry include Core-Mark Holding Company, Inc. (CORE) and WageWorks, Inc. (WAGE), each carrying a Zacks Rank #2 (Buy).
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