Hertz is seeking to boost its presence in Australia and New Zealand with the acquisition of low-cost rental business Ace Rental Cars.
The American giant also signed an alliance with Apollo Motorhome Holidays.
At a press conference in Sydney, Hertz president Michel Taride said the two ventures were the first steps in plans to diversify the brand.
Despite continuing with its core business, Mr Taride said: “We recognise we need to continue refining and developing our product offerings in order to meet the changing requirements of our customers, and to position ourselves for emerging opportunities.”
Mr Taride said he was surprised to learn that almost half of the car rental market in New Zealand was in the “second tier” segment and that the aim of the Ace acquisition was to “try to grow the brand further” in Australia and across the Tasman.
“Even in a downturn, people still want to travel and we want to be part of the low cost offerings without diluting the product.
“Companies with a long history like ours have to adapt.”
Hertz has also signed an alliance with Apollo Motorhome Holidays
Hertz has also partnered with Apollo Motorhome Holidays, the largest privately-owned operator of recreational vehicles in the world.
The deal will allow Hertz to enter the Australian motorhome market quickly with a ready-made product range.
The partnership will see Hertz offer Apollo’s recreational vehicles from April 1st.
“The deals are all strategic decisions designed to ensure that we have the travel products and relationships that our customers expect in various market segments,” Mr Taride said.
Hertz estimates the value of the Australian rental car market at AUD1.5 billion.