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Penske takes over Hertz car rental locations in Indiana

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Michigan-based Penske Automotive Group Inc. has acquired 20 Hertz car rental locations around Indiana and will operate them as franchises of New Jersey-based Hertz Corp.

The companies declined to disclose the acquisition price. But Penske, which is led by legendary IndyCar owner Roger Penske, said it intends to add as many as five locations in the next year and boost overall employment at the franchises by 15 to 20 jobs.

“We’re going to grow this business,” Bud Danker, president of Penske car rental operations, said in an interview. “We’re excited about being in Indiana, especially with our heritage there.”

The franchise deal took effect over the weekend. Penske hired 160—or about 96 percent—of Hertz’s Indiana employees.

The deal gives Penske control of Hertz rental operations at three airports—Indianapolis International, Fort Wayne and South Bend. But Danker said Penske is particularly focused on growing the “off-airport” market, with the potential for new or expanded locations in Fort Wayne, Goshen, Kokomo, Bloomington and Richmond.

Perhaps a “half-dozen” locations will be co-located at some of the 58 existing truck-rental locations around Indiana, which are owned by Penske Corp., an affiliate of Penske Automotive, Danker said.

Penske also is purchasing 1,000 new cars to freshen up Hertz’ rental fleet. Danker said it will later transfer those cars to the used-car operations at the two Penske Honda and Chevrolet auto dealerships it operates in Indiana.

While the car-rental locations will still be branded Hertz, and will use the Hertz website for reservations, Penske will add its brand name to employee uniforms, to check-out booths and in other subtle ways.

“You will see some sub-branding of Penske car rental,” Danker said. “We’ve got a strong brand, particularly in Indianapolis.”

Eight of Hertz's 20 locations are in the Indianapolis area. Roger Penske is well known here because his IndyCar team has won the Indianapolis 500 race 15 times, more than any other owner.

The Indiana deal between Penske and Hertz mirrors a similar one the companies made in October, which gave Penske the Hertz franchise rights in Memphis, Tenn.

Penske Automotive Group is a Fortune 500 company with $13.2 billion in revenue and more than 16,000 employees.

Penske shares rose 69 cents, or 2.3 percent, to $30.74 each, in Tuesday morning trading.
 

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  1. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  2. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

  3. Good try, Mr. Irwin, but I think we all know the primary motivation for pursuing legal action against the BMV is the HUGE FEES you and your firm expect to receive from the same people you claim to be helping ~ taxpayers! Almost all class action lawsuits end up with the victim receiving a pittance and the lawyers receiving a windfall.

  4. Fix the home life. We're not paying for your child to color, learn letters, numbers and possible self control. YOU raise your children...figure it out! We did. Then they'll do fine in elementary school. Weed out the idiots in public schools, send them well behaved kids (no one expects perfection) and watch what happens! Oh, and pray. A mom.

  5. To clarify, the system Cincinnati building is just a streetcar line which is the cheapest option for rail when you consider light rail (Denver, Portland, and Seattle.) The system (streetcar) that Cincy is building is for a downtown, not a city wide thing. With that said, I think the bus plan make sense and something I shouted to the rooftops about. Most cities with low density and low finances will opt for BRT as it makes more financial and logistical sense. If that route grows and finances are in place, then converting the line to a light rail system is easy as you already have the protected lanes in place. I do think however that Indy should build a streetcar system to connect different areas of downtown. This is the same thing that Tucson, Cincy, Kenosha WI, Portland, and Seattle have done. This allows for easy connections to downtown POI, and allows for more dense growth. Connecting the stadiums to the zoo, convention center, future transit center, and the mall would be one streetcar line that makes sense.

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