Global car rental giant Hertz Strategic investment in Shenzhou 20% stake

Chinaventure Beijing Time April 16, the global car rental giant Hertz (NYSE:HTZ) and the Chinese car rental industry leadership brand China Car rental jointly announced that the two sides formally signed a cooperation agreement and launched a comprehensive strategic cooperation. According to the agreement, Hertz will be the strategic investment in China car rental, the Shenzhou car rental nearly 20% of the equity and a board seat. Meanwhile, the Shenzhou car will acquire and integrate all Hertz's rental business in China. Hertz Company was founded in 1918, with nearly hundred years of development history. Hertz, which has Hertz (Hertz), Dollars and Thrifty, is the world's largest airport car rental brand, and occupies more than 25% of the U.S. market share. Hertz operates about 10,400 Direct, authorized and franchise outlets in more than 150 countries around the world in North America, Europe, South America, Asia, Australia, New Zealand, the Middle East and Africa, with a fleet of about 750,000 units. China's largest rental car rental company, founded in 2007, currently in mainland China 66 major cities and 52 major airports have nearly 700 car rental outlets, fleet size of nearly 50000 units, products include long rental, short rental, financial leasing and other specialized rental services and related services. According to Roland Berger survey, China car rental in the fleet size, network coverage, market share and business income and other operational and financial indicators, in the Chinese car rental industry are in the absolute leading position. This time, Hertz will be with the Shenzhou car rental in capital, business, management, technology and other aspects of a comprehensive and in-depth cooperation. In accordance with the agreement reached between the two sides, Hertz in addition to the China car rental investment in huge capital, it will also provide full support for the rapid development of China's car rental industry, including its experience in the last hundred years of car rental management, leading technology and tools, and a wealth of global customer resources; According to the agreement, the Shenzhou car rental will be connected to Hertz's global reservation system, Both sides of the information system will achieve seamless docking, thereby sharing the customer, the Fleet and service network and other resources. "Hertz, the world's leading car rental service brand, is the perfect choice to work with China's largest and most recognized car rental company," said Mark Ferisola, chairman and chief executive of Hertz. The current size of China's car rental is four times times larger than its biggest competitor, and continues to grow at a high rate, doubling 2012 annual revenues to $250 million trillion; In 2009-2012, the growth rate of China's car rental was as high as 200%, 6 times times that of the same period, and it is expected that by 2016, the annual growth of China's car rental will continue to exceed 50%, more than 3 times times the overall market's expected growth. The cooperation with China will allow Hertz to gain a unique position in the European and American brands and further support the fast-growing Chinese car rental market. Hertz, together with the Shenzhou car, will not only meet the needs of business and leisure car-rental travel in China, but will also provide the best car rental solutions for international travellers travelling to and from China worldwide. "Hertz has a wealth of industry experience, first," said Lu Zhengyao, chairman and CEO of the China Car Rental board.Technology, strong brand impact and rich customer resources. We are delighted to carry out all-round and deep strategic cooperation with Hertz. Believe this cooperation, will further strengthen the Shenzhou car rental shareholder strength, consolidate the Chinese car rental industry in China's leading position, driving the Shenzhou car to achieve the scale, brand and product services to further upgrade, so as to create a more high-quality, convenient rental car experience for domestic and foreign customers. "According to statistics, China's international tourism spending over 100 billion U.S. dollars in 2012, while the domestic car rental market in the next 5 years, the annual growth rate will be more than 15%, Roland Berger's latest survey data show that in 2015 China's car rental market will be more than 6 billion U.S. dollars." China has become the fastest growing and most promising car rental market in the world. Industry observers believe that the powerful coalition is another milestone in China's car rental industry. In recent years, the Shenzhou car rental has won the Lenovo Holdings, the United States, such as Warburg investment and capital giants strong support, rapid development, and gradually consolidate its car rental market in China's absolute leading position. This cooperation will further strengthen the capital and brand strength of China's car rental, pull up its gap with domestic rivals, while for the Shenzhou car rental to the international capital market under the heavy bureau; For Hertz, you can use the China's leading advantage of leasing cars to quickly seize the Chinese market, the implementation of China's strategy, will help consolidate its leading position in the global car rental industry.