Hertz Global Holdings
| File:Hertz logo.svg Hertz logo | |
| Company type | Public company |
|---|---|
| Industry | Car rental |
| Founded | 1918 |
| Founder | Walter L. Jacobs |
| Headquarters | Estero, Florida , United States |
Area served | Worldwide (160 countries) |
Key people | Gil West (CEO) |
| Products | Vehicle rental services |
Number of employees | 23,000 (2021) |
| Website | www |
Hertz Global Holdings, Inc.—previously known as The Hertz Corporation and commonly referred to as Hertz—is a prominent American car rental enterprise based in Estero, Florida. The organization manages the Hertz brand alongside its subsidiaries, including Dollar Rent A Car, Firefly Car Rental, and Thrifty Car Rental.
Ranking among the leading three rental car holding companies in the United States, Hertz holds a 36% share of the market, positioning it ahead of Avis Budget Group and trailing only Enterprise Holdings. It is recognized as a top global vehicle rental provider by revenue, number of locations, and fleet size, operating in 160 nations spanning North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, and the Middle East.
In the 2020 Fortune 500 rankings, Hertz was positioned at number 326. The company filed for bankruptcy protection on May 22, 2020, as a result of a significant drop in revenue linked to the COVID-19 pandemic. By December 31, 2021, Hertz reported revenues of $7.3 billion, assets totaling $19.7 billion, and employed roughly 23,000 individuals. The firm successfully exited Chapter 11 bankruptcy proceedings on July 1, 2021.
Origins and Founding
Founded in 1918 by Chicago native Walter L. Jacobs under the name Rent-a-Car Inc., Hertz Global Holdings began with a modest fleet of twelve Model T Fords. Within five years, this fleet expanded to 600 vehicles, generating approximately US$1 million annually. In 1923, John D. Hertz—owner of Yellow Truck and Coach Manufacturing Company—purchased the business and rebranded it as Hertz Drive-Ur-Self System. Jacobs continued to serve as president and COO until 1961.
By 1926, John Hertz sold the rental operation to General Motors (GM), which had completed its acquisition of Yellow Truck and Coach Manufacturing by 1943. Under GM's stewardship, Hertz introduced several innovations: launching the first rental car charge card in 1926; opening its inaugural location at Chicago’s Midway Airport in 1932; and establishing the first one-way rental option in 1933. The company extended its reach internationally with Canadian operations commencing by 1938 and European services beginning in France by 1950.
Corporate Expansion
In 1953, John Hertz reacquired the brand from General Motors through his enterprise, The Omnibus Corporation, which was subsequently renamed The Hertz Corporation. The following year marked Hertz’s debut on the New York Stock Exchange along with its acquisition of Metropolitan Distributors—a New York-based truck leasing firm with a fleet of 4,000 trucks—boosting Hertz’s holdings to approximately 15,500 trucks and 12,900 passenger cars. Supported by Lehman Brothers and guided by director Frank J. Manheim, Hertz initiated a franchise repurchase strategy within the U.S. while broadening its international presence. This approach elevated the company’s market capitalization from $7 million in 1953 to $100 million by 1965.
Hertz entered South American markets in 1961 and became part of Radio Corporation of America in 1967. In 1985, UAL Corporation (later known as Allegis Corporation) acquired Hertz for $587.5 million; under this ownership, the fleet grew to nearly 400,000 vehicles across more than 120 countries. Two years later, Allegis sold Hertz to Park Ridge Corporation—a subsidiary of Ford Motor Company—for $1.3 billion; subsequently, Hertz relocated its headquarters from Midtown Manhattan to Park Ridge, New Jersey in 1988.
In 2002, Hertz became the first international car rental company to operate within China. It formed a partnership with China Auto Rental in 2013 and reduced its ownership stake in that venture by 2016 while continuing commercial collaboration through at least 2023.
By the second quarter of 2005, Hertz accounted for roughly ten percent of Ford’s pre-tax earnings. After eighteen years under Ford’s control, private equity firms Clayton, Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global Private Equity acquired Hertz for an estimated $15 billion—including debt—with an enterprise valuation near $5.6 billion. This consortium relisted Hertz on the New York Stock Exchange in November 2006 and further expanded its European operations.
In September 2007, Hertz introduced "Simply Wheelz," a subbrand aimed at economy and leisure customers; by 2008 it had established self-service kiosks offering six vehicle categories at airports across California, Florida, and Las Vegas. This brand was renamed Advantage Rent-a-Car in autumn 2009.
In December 2009, Clayton, Dubilier & Rice purchased British Car Auctions (BCA) for approximately £390 million; BCA was later divested to Haversham Holdings without being integrated into Hertz’s operations.
Dollar Thrifty and Advantage transactions
In November 2012, Mark P. Frissora, Chairman and CEO of Hertz Global Holdings, revealed the acquisition of Dollar Thrifty Automotive Group, a U.S.-based car rental firm headquartered in Tulsa, Oklahoma, for $2.3 billion. Hertz completed the transaction on November 19, 2012, paying $87.50 per share. This acquisition expanded Hertz's international presence to roughly 10,400 locations across 150 countries. Before the merger, Dollar Thrifty was recognized as the fourth-largest car rental company in the United States.
Shortly after, in December 2012, Hertz divested its Advantage Rent a Car division to Franchise Services of North America and Macquarie Capital, refining its portfolio to concentrate on primary brand offerings.
Modern corporate changes
In May 2013, Frissora and Florida Governor Rick Scott announced that Hertz Global Holdings would move its global headquarters from Park Ridge, New Jersey to Estero, Florida. This relocation aimed to capitalize on Florida's robust travel and tourism sector while streamlining corporate functions for enhanced operational efficiency. During the transition, a temporary office in Naples housed 640 employees until the new headquarters was finalized in 2015.
John P. Tague took over as CEO and president of The Hertz Corporation in November 2014, succeeding Frissora. In January 2017, Kathryn V. Marinello, previously CEO of Stream Global Services, was named CEO, bringing extensive strategic expertise and strong industry credibility.
Marinello stepped down in May 2020 amid the challenges posed by the COVID-19 pandemic; Paul Stone, formerly executive vice president and chief retail operations officer for North America, assumed the CEO role to steer Hertz through recovery.
On October 5, 2021, Hertz appointed Mark Fields as interim CEO and promoted Paul Stone to president and chief operations officer to bolster leadership during corporate restructuring.
Stephen M. Scherr was appointed CEO in February 2022, introducing renewed strategic vision aimed at driving growth and improving financial outcomes amid shifting global market conditions.
Bankruptcy
During the COVID-19 crisis, Hertz struggled with lease payments on its vehicle fleet and sought assistance from lenders including activist investor Carl Icahn to avert bankruptcy. CEO Paul Stone replaced Kathryn Marinello in May 2020. When negotiations with creditors failed, Hertz filed for Chapter 11 bankruptcy protection on May 22, 2020. At that time, Icahn owned 39% of shares and controlled three board seats after investing $2.3 billion since 2014.
The company’s reliance on financing secured by its fleet became problematic as used-car prices dropped sharply during the pandemic, straining liquidity. The bankruptcy filing triggered a 60-day grace period before lenders could repossess approximately 400,000 financed vehicles within the U.S.
Despite being under bankruptcy protection, Hertz attempted to raise up to $1 billion through new equity issuance in June 2020 amid a dramatic surge in its stock price—rising nearly tenfold due to retail investor enthusiasm. The company managed to sell $29 million worth of shares before the SEC intervened to stop further sales. By October 2020, Hertz’s stock was removed from the New York Stock Exchange.
Hertz successfully exited Chapter 11 on July 1, 2021, adopting a new ticker symbol HTZZ. In October 2021, Mark Fields was named interim CEO to lead strategic initiatives including an order for 100,000 Tesla vehicles aimed at accelerating fleet electrification—highlighting Hertz’s commitment to sustainability and innovation.
The company returned to public trading on Nasdaq under the symbol HTZ in November 2021. Stephen M. Scherr took over as CEO in February 2022 and was succeeded by Gil West in March 2024 as part of ongoing leadership changes supporting Hertz’s business expansion and market realignment.
Wrongful accusations of vehicle theft against customers
Since 2019, Hertz has been embroiled in disputes arising from incorrect allegations of rental car theft directed at its customers. Numerous individuals report experiences involving armed arrests, extended detentions, and the subsequent impact on their careers and earnings. Hertz has blamed these incidents on outdated, fragmented computer systems; however, evidence indicates that minority customers tend to be disproportionately targeted.
In February 2022, a court order required Hertz to reveal that it files roughly 3,365 theft claims each year—representing just 0.014% of its 25 million U.S. rentals. At least 47 plaintiffs have initiated lawsuits against Hertz for wrongful theft accusations that resulted in unjust arrests and imprisonment.
By December 2022, Hertz agreed to resolve 364 outstanding theft-related claims through a settlement valued at approximately $168 million, addressing over 95% of these legal disputes. This resolution represented a crucial move toward mitigating the company’s legal liabilities and restoring its reputation in the marketplace.
Rental locations and global operations
Hertz maintains around 12,000 corporate and franchised outlets spanning 160 countries worldwide, covering regions including North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand.
Evolution of franchising
In 1941, Wilford Gwilliam of Overland West secured a Hertz franchise. Today, Overland West stands as the largest Hertz franchisee in North America, operating 27 rental branches and four vehicle sales centers across eight states. Ownership transitioned from Gwilliam to Devere J. Sparrow and later, in 1976, to Jerry H. Petersen. Petersen currently holds the roles of owner, president, and CEO, managing both franchise operations and personnel.
Vehicle fleet
Hertz’s rental inventory includes an extensive selection of cars from brands such as BYD, Mercedes-Benz, Infiniti, Cadillac, Land Rover, BMW, Porsche, Jaguar, Mazda, Volvo, Toyota, Jeep, and Lincoln. By December 2012, the U.S. fleet had grown beyond 490,000 vehicles. As of 2014 data shows that 78% of the fleet achieved highway fuel efficiency ratings of at least 28 miles per gallon—a reflection of Hertz’s dedication to incorporating sustainability into its business practices.
Unique specialty vehicles
In 1966, Hertz collaborated with renowned racing designer Carroll Shelby to produce a distinctive modified Ford Mustang aimed at attracting clientele and increasing Mustang sales. A total of one thousand GT350H Mustangs were made available as rental cars; some units reportedly returned with engine modifications. The "Rent-a-Racer" initiative during the late 1960s also included vehicles like Corvettes, Jaguar XK-Es, and AMC AMXs at select locations.
The partnership with Shelby was revived in 2006 when Hertz offered specially tuned Ford Mustang GT-H Coupes as a homage to the original model from 1966—starting with 500 units in 2006 followed by convertible versions in 2007. The program expanded in 2008 and 2009 to feature modified Chevrolet Corvette (C6) "ZH-Z" Coupes and convertibles.
In 2016, the specialty car program was relaunched featuring vehicles such as Hendrick Motorsports-enhanced Chevrolet Corvette (C7) Stingray Z/06 models, Chevrolet Camaro SS and ZL-1 variants, alongside Shelby-modified Ford Mustang GTs—strengthening Hertz’s market position through exclusive high-performance offerings.
Advancements in Technology
In 2000, Hertz incorporated SiriusXM Satellite Radio into its rental vehicles across North America.
By 2007, the company experimented with hourly car rentals at three sites in New York City and subsequently introduced a worldwide carsharing service called Connect by Hertz in December 2008. This initiative catered to customers seeking short-term hourly rentals in urban areas such as Park Ridge, New York City, Orlando, London, Paris, and Sydney. The service was later renamed Hertz on Demand and Hertz 24/7 before the U.S. carsharing program concluded in September 2015.
In 2009, Hertz initiated trials of a photographic system designed to record rental vehicle damage.
November 2011 marked the rollout of ExpressRent kiosks at selected locations—these were the first extensive U.S. rental kiosks providing real-time assistance via video chat with live agents—aimed at improving customer convenience through cutting-edge self-service technology.
The Green Collection
Hertz unveiled its Green Collection in September 2006, showcasing a lineup of eco-conscious vehicles including the Toyota Prius, Ford Fusion, Buick LaCrosse, Toyota Camry, and Hyundai Sonata. In the United States, these models achieved EPA highway fuel economy ratings of approximately 28 miles per gallon. The Green Collection was further extended to Singapore in 2014.
Electric Vehicle Rental Fleet
In October 2021, Hertz made a significant move toward electrification by placing an order for 100,000 Tesla vehicles, predominantly Model 3 sedans, followed by an addition of Model Y crossovers in March 2022. The fleet leverages Tesla’s supercharger network while Hertz simultaneously develops its proprietary charging infrastructure.
In October 2022, Hertz partnered with Uber to provide up to 50,000 Tesla cars for Uber drivers, broadening its presence within the ride-hailing sector.
In April 2022, Hertz committed to acquiring up to 65,000 Polestar 2 electric vehicles over a five-year span. By September that year, it secured an agreement with General Motors to purchase up to 175,000 EVs from brands including Chevrolet, Buick, GMC, Cadillac, and BrightDrop within five years.
Supporting its EV initiatives, Hertz signed a memorandum of understanding with bp pulse in September 2022 aimed at establishing a nationwide EV charging network throughout North America.
As of February 2023, Hertz projected that electric vehicles would constitute one-quarter of its overall fleet. However, by January 2024, the company declared plans to divest one-third of its EV inventory through platforms such as Auto Trader and EV.com, reallocating capital toward gasoline-powered vehicles due to subdued demand and elevated maintenance expenses associated with EVs. CEO Stephen Scherr attributed this shift to Tesla’s steep price reductions and limited volume discounts on replacement parts negatively affecting Hertz’s profitability and resale values.
Despite this partial retreat from its electrification strategy, Hertz maintained offerings of electric models from Tesla, GM, Kia, Polestar, and Volkswagen. Scherr also highlighted increased accident rates involving electric vehicles and consumer unfamiliarity as ongoing challenges impacting the business model. Industry analysts cautioned that this decision might hinder growth in the used EV market and slow broader adoption among consumers.
In February 2024, Hertz temporarily halted orders for Polestar cars citing declining electric vehicle valuations—reflecting continuous strategic adjustments amid fluctuating market dynamics.
Heavy machinery leasing
Hertz introduced its heavy machinery rental segment, Hertz Equipment Rental Corporation, in 1965, opening its initial branch in Houston, Texas, while establishing its main office in Park Ridge, New Jersey. This division transitioned into an independent publicly traded entity named Herc Holdings Inc. on July 1, 2016. Based in Bonita Springs, Florida, Herc Rentals was not impacted by Hertz's bankruptcy declaration in May 2020.
Texas School Book Depository signage
In December 1959, Hertz installed a large rooftop sign measuring 100 by 23 feet atop the Texas School Book Depository in Dallas, Texas. The display featured the phrases "HERTZ RENT A CAR" and "CHEVROLETS," accompanied by an electronic panel that alternated between showing the time and temperature—one of the pioneering digital billboards of its time. This site is historically significant as the location from which Lee Harvey Oswald fired during President John F. Kennedy’s assassination in 1963. The sign was dismantled in 1979, with its metal components now exhibited at the Sixth Floor Museum at Dealey Plaza.
"Let Hertz Put You in the Driver's Seat"
In 1959, Hertz collaborated with the advertising firm Norman, Craig & Kummel (NCK) to develop the slogan "Let Hertz put you in the driver's seat." First launched that year, this tagline became a fundamental element of Hertz’s branding strategy through various media including print ads, signage, and television commercials throughout the early 1960s. The campaign is ranked #65 among the top 100 advertising efforts of the twentieth century by Advertising Age, highlighting its significant influence on Hertz’s marketing approach.
O.J. Simpson
During the 1980s and 1990s, former professional football player O. J. Simpson acted as a spokesperson for Hertz, playing a key role in increasing representation of black athletes within advertising. One memorable campaign from the mid-1970s depicted Simpson dashing through an airport to reach his rental vehicle, accompanied by the slogan "Hertz, the superstar in rent-a-car." This advertisement elevated Simpson’s public profile and led to additional endorsement deals alongside sports figures like golfer Arnold Palmer and actress Jamie Lee Curtis. Nevertheless, following Simpson’s highly publicized legal controversies—including the infamous Ford Bronco pursuit and subsequent murder trial—Hertz ended its association with him.