Hertz seeks buyer in Australia

Press, Volume CXIII, Issue 33408, 14 December 1973, Page 14

Hertz seeks buyer in Australia

(X.Z. Press Association—Copyright) SYDNEY, December 13.

Hertz International, Ltd, the world’s biggest car rental corporation, has offered for sale its Australian operations. The Australian “Financial Review” says that the Australian operation has lost more than $500,000.

Hertz has approached Associated Securities, Ltd, owner of the rival rental group, Kay, and has also had tentative talks with Brambles Industries, Ltd, which is

interested in the profitable truck division.

Hertz, which was second into the business in Australia behind Avis, has slipped to number four behind Kay with an estimated annual turnover of $2.5m and 12 per cent of the total market. ! In two years out of the 12 it has been operating in Australia, Hertz carried profits but at December 31, 1972, i accumulated losses amounted to $503,635. The company operates as principal in Sydney, Melbourne and Canberra, with all other Australian business conducted on a franchise basis.

The company has been plagued by a succession of top-management changes in Australia with seven chief executives in the last 10 years.

In recent years it has concentrated on truck rentals which now account for around 40 per cent of revenue. Of the 400 vehicles .the company runs about 150 iare trucks.