Hertz, formerly known as The Hertz Corporation, is a renowned American car rental company with a rich history and a significant presence in South Africa. Based in Estero, Florida, Hertz has grown from a small operation in 1918 to a global leader in the car rental industry.
Hertz Logo
A Brief History of Hertz
The company was founded by Walter L. Jacobs in 1918 with a modest fleet of a dozen Model T Ford cars. Within five years, Jacobs expanded his fleet to 600 vehicles, generating approximately US$1 million in annual revenues. John D. Hertz acquired the brand in 1926, later selling it to General Motors Corporation.
In 1953, John Hertz repurchased the brand through The Omnibus Corporation, renaming it The Hertz Corporation. The company went public in 1954 and expanded its fleet through acquisitions, including Metropolitan Distributors, a New York-based truck leasing company.
During General Motors' ownership, many local Hertz franchises were sold to independent business entities. Hertz later initiated a buyback program for these franchises, expanding its reach both in the US and globally. In 2002, Hertz became the first international car rental company to open in China.
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Hertz in South Africa
Hertz Rent A Car operates as an international franchisee of the global Hertz Corporation throughout southern Africa. The Hertz brand has been driving the corporate, government and leisure car hire markets in South Africa since 1950 and continues to be a respected and instantly recognizable brand in the vehicle rental sector. Hertz is a division of CFAO Mobility, a major vehicle dealer group that operates across a network of over 80 dealerships and specializes in a broad range of motor and related products and services: from the sale of new and used passenger cars and commercial vehicles, through to vehicle service, parts and accessories.
Hertz is a renowned car rental company operating in South Africa, offering a wide range of vehicles for various travel needs. The company provides services in major cities and airports across the country, ensuring convenience for travelers. With a fleet of well-maintained vehicles, Hertz ensures safety and comfort for its customers during their journeys in South Africa.
One of the key facts about Hertz in South Africa is its extensive network of rental locations, making it easy for customers to pick up and drop off vehicles at convenient spots. The company also offers flexible rental options, including daily, weekly, and monthly rentals, catering to different travel durations and preferences. Additionally, Hertz provides excellent customer service and assistance to ensure a smooth rental experience for all customers.
Hertz currently has over 42 car hire branches strategically located at major hubs throughout South Africa including Cape Town, Johannesburg, Pretoria, Durban and Port Elizabeth. Hertz has car rental locations in Namibia, Hosea Kutako International Airport, Windhoek Downtown, Walvis Bay and Ondangwa International Airport.
Fleet and Services
The Hertz rental car fleet includes vehicles from various manufacturers, such as BYD, Mercedes, Infiniti, Cadillac, Land Rover, BMW, Porsche, Jaguar, Mazda, Volvo, Toyota, Jeep, and Lincoln. In 1966, Hertz partnered with Carroll Shelby to develop an exclusive version of the Ford Mustang, resulting in the creation of the GT350H Mustang, also known as the "Rent-a-Racer."
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Ford Mustang Shelby GT350-H
In 2006, Hertz partnered with Shelby again to rent specially-modified Ford Mustang GT-H Coupes as a tribute to the original 1966 model. Hertz launched its Green Collection in September 2006, featuring environmentally friendly vehicles with high fuel efficiency ratings.
It introduced ExpressRent kiosks at various rental locations in November 2011.
THE DOWNFALL OF HERTZ | Hertz Car Rental Bankruptcy
Recent Developments and Challenges
As a result of the COVID-19 pandemic, Hertz faced significant financial challenges. On April 30, 2020, the company announced missed lease payments and sought support from lenders. Kathryn V. Marinello resigned as CEO on May 18, 2020, and Paul Stone was appointed as the new president and chief executive.
On May 22, 2020, Hertz filed for Chapter 11 bankruptcy. In February 2022, Stephen M. Scherr became the CEO of Hertz.
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Controversies
Since 2019, Hertz has faced numerous reports of falsely accusing customers of stealing rental cars. Many victims reported being arrested and jailed, leading to significant personal and professional consequences. In February 2022, a judge forced Hertz to reveal that it reports about 3,365 customers to the police every year for theft. In December 2022, Hertz announced the settlement of 364 pending claims related to vehicle theft reporting, resolving over 95% of its pending theft reporting claims.
Advertising and Marketing
In 1959, Norman, Craig & Kummel (NCK) became Hertz's advertising agency and developed the slogan "Hertz puts you in the driver's seat." In the 1980s and 1990s, O. J. Simpson appeared as a spokesperson in Hertz ads, contributing to the increased representation of black athletes in advertising.
O.J. Simpson Hertz Commercial
Hertz's Electric Vehicle Strategy
In January 2024, Hertz announced plans to sell a third of its EV fleet and reinvest in petrol/gas-powered cars, citing weak demand and high repair costs for its battery-powered vehicles. The company attributed much of the blame to Tesla, whose price cuts led to faster depreciation of its EVs. Hertz also noted higher accident rates and consumer unfamiliarity with EVs as contributing factors, emphasizing that this was a partial reversal, not a complete abandonment of its fleet electrification.
Key Facts and Figures
Here is a summary of key facts about Hertz:
| Aspect | Details |
|---|---|
| Founded | 1918 by Walter L. Jacobs |
| Headquarters | Bonita Springs, Florida |
| CEO | Stephen M. Scherr |
| Fleet | Includes a variety of manufacturers, including Tesla, GM, Kia, Polestar, and Volkswagen |
| Bankruptcy Filing | Chapter 11 on May 22, 2020 |
| Advertising Slogan | "Hertz puts you in the driver's seat" |
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