Penske Automotive Group Inc. and auto rental giant Hertz Corp. have reached an agreement for Penske to operate Hertz rental locations in key Indiana markets.
Under the agreement, Penske has acquired the assets and franchise rights to run more than 20 Hertz airport and off-airport rental locations -- including airport locations in Fort Wayne, Indianapolis and South Bend -- under the Hertz brand name, the companies said in a statement today.
Hertz said the deal is part of its strategy to turn over some markets to franchisees. Hertz first partnered with Penske in October in Memphis, Tenn., where Penske acquired 15 rental car locations.
Hertz CEO Mark Frissora, the former CEO of supplier Tenneco Inc., said that extending the relationship to Indiana was the next logical step in expanding the Penske partnership. Frissora said, “The Penske team is creating the most valued car rental experience in the Memphis market and we’re confident they will bring the same commitment” to Indiana.
Penske, of suburban Detroit, ranks No. 2 on the Automotive News list of the top 125 dealerships groups in the United States with retail sales of 154,829 new vehicles in 2011.
A Penske spokesman said the expansion will help accelerate the company’s growth in key markets.