Dollar Thrifty Automotive Group
| Company type | Public (1997–2012) |
|---|---|
| Industry | Car rental |
| Founded | 1990 (as part of Chrysler's Pentastar Transportation Group) |
| Founder | Chrysler Corporation |
| Defunct | November 19, 2012 |
| Fate | Acquired by The Hertz Corporation |
| Headquarters | Tulsa , United States |
Area served | Worldwide (over 70 countries as of 2003) |
Key people | Joseph E. Cappy (first president and CEO), Gary L. Paxton (president and CEO from 2003), Scott L. Thompson (president and CEO from 2008) |
| Products | Car rental services (through Dollar Rent A Car and Thrifty Car Rental) |
Number of employees | Approximately 5,200 (1997), approximately 7,000 (circa 2003) (1997, ~2003) |
Dollar Thrifty Automotive Group served as the parent company overseeing both Thrifty Car Rental and Dollar Rent A Car. It was established as a standalone car rental division under the Chrysler Corporation on November 4, 1997, managing the operations of these two brands. On November 19, 2012, The Hertz Corporation acquired the company for US$2.3 billion.
Company development
Originating in 1990 through Chrysler’s Pentastar Transportation Group in Tulsa, Oklahoma, Dollar Thrifty Automotive unified Chrysler’s rental car holdings after purchasing Thrifty Rent A Car in 1989 and Dollar Rent A Car in 1990. By 1997, the enterprise reported revenues of US$843.94 million, maintained a workforce of approximately 5,200 employees, and operated a vehicle fleet nearing 100,000 units.
In November 1997, Dollar Thrifty Automotive submitted its initial public offering (IPO) registration with the U.S. Securities and Exchange Commission and subsequently began trading on the New York Stock Exchange under the ticker symbol DTG on December 23, 1997. Up until December 2002, the Dollar and Thrifty brands functioned as a unified rental group to streamline expenses before transitioning into distinct subsidiaries within the holding company structure. By 2003, both brands had expanded their presence to over 70 countries and operated roughly 800 corporate and franchised outlets throughout the United States and Canada.
The rental fleet
Between 1990 and 2009, Dollar Thrifty Automotive primarily offered vehicles from Chrysler, Dodge, and Jeep across U.S. locations, with select branches also providing models from Mazda, Nissan, and Toyota. In October 2009, the company broadened its fleet by incorporating automobiles from Ford Motor Company, General Motors, Nissan, Hyundai, Kia, alongside Chrysler vehicles. This diversification helped propel Dollar Thrifty’s stock to a 52-week peak of $27.50 on the New York Stock Exchange, closing at $26.33 with an increase of 0.57%.
Former Senior Executives
The inaugural president and CEO of Dollar Thrifty Automotive Group, Joseph E. Cappy, previously served as the final president and CEO of American Motors Corporation before his move to Chrysler in 1987. Beginning in 1993, he oversaw Chrysler's car rental divisions and directed Dollar Thrifty’s transition from Detroit to Tulsa in 1994, ultimately managing its separation from Chrysler in 1997.
In October 2003, Gary L. Paxton took over the roles of president and CEO. Paxton’s tenure with Dollar Rent A Car started in 1968, during which he held multiple executive positions before assuming leadership of the company’s operations and its workforce of approximately 7,000 employees at the Tulsa headquarters.
After Paxton announced his retirement in October 2008, the Board appointed Scott L. Thompson as president, CEO, and director. Thompson had joined Dollar Thrifty in May 2008 as Senior Executive Vice President and Chief Financial Officer, arriving from Group 1 Automotive, a Fortune 500 firm listed on the NYSE. Paxton remained involved as a consultant until October 2009.
Furthermore, R. Scott Anderson, affiliated with the company since 1987, served as Senior Executive Vice President responsible for corporate and franchise operations along with global sales and marketing. In 2008, he was elevated to Chief Marketing Officer.
Acquisition by Hertz Corporation
Hertz Global Holdings initiated a takeover bid for the Tulsa-based rental car company in 2009, offering $41 per share. By April 2010, Hertz had increased its offer from $1.27 billion to $1.5 billion; however, Dollar Thrifty shareholders rejected these proposals multiple times. In July 2011, Hertz raised its bid to $1.91 billion, surpassing a competing $1.55 billion offer from Avis Budget Group. On November 19, 2012, Mark P. Frissora, Hertz’s chairman and CEO, officially announced the acquisition of Dollar Thrifty Automotive Group for $2.3 billion.
Following the acquisition, Dollar Thrifty was restructured into two distinct subsidiaries—Thrifty Car Rental and Dollar Rent A Car—each operating autonomously with separate sales teams, marketing strategies, vehicle fleets, and franchise networks. These entities function under Hertz’s corporate headquarters located in Estero, Florida, where Kathryn V. Marinello serves as president and CEO.
Dollar Rent A Car
Established in 1965 by Henry J. Caruso in Los Angeles, California, Dollar Rent A Car Systems, Inc., initially known as Dollar A Day Rent A Car, was purchased by The Chrysler Corporation on August 15, 1990. Chrysler subsequently merged Dollar with Thrifty Car Rental to create the Dollar Thrifty Automotive Group.
Dollar primarily focuses on leisure travelers, generating approximately 76% of its revenue in 1997 from states such as Florida, California, Hawaii, and Nevada. The brand maintains over 370 locations across 26 countries—including Australia, Canada, the Caribbean region, and Latin America—and operates roughly 230 sites within the United States.
Its service portfolio extends beyond standard vehicle rentals to include amenities such as ski racks, child safety seats, GPS navigation units, and comprehensive operational support services—bolstering its competitive position within the car rental sector.
Thrifty Car Rental
Founded in 1958 as a subsidiary of Thrifty Rent A Car System, Inc., Thrifty Car Rental expanded its market reach by acquiring Ohio-based Snappy Car Rental in 1989 for $40 million to strengthen its presence in insurance replacement rentals. Formerly ranked as North America’s fifth-largest car rental company, Thrifty emphasizes airport locations along with local market services and provides franchising and franchise support.
In 1989, Chrysler Corporation acquired Thrifty for $263 million; notably Chrysler Chairman Lee Iacocca partly financed the purchase of Snappy Car Rental by Thrifty. Currently operating as a Hertz subsidiary, Thrifty maintains a global footprint with 472 locations across the United States and Canada plus an additional 589 sites spanning the Americas, Africa, Europe, the Middle East, Caribbean islands, and Asia-Pacific territories.
Awards and recognition
- In 2003, Dollar Thrifty Automotive earned a spot on the Fortune 1000 list.
See also
External links
- Dollar Rent A Car official website
- Thrifty Car Rental official website
- Hertz official site of the parent company
- Articles with short description
- Pages using start date and age with unknown parameters
- Car rental companies based in Florida
- Companies based in Tulsa, Oklahoma
- American companies established in 1990
- Transport companies established in 1990
- Companies formerly listed on the New York Stock Exchange
- 1997 initial public offerings
- 2012 mergers and acquisitions
- 5
- Companies of the United States by year of establishment