NEW YORK --- The Hertz Corp. on July 5 signed a new five-year fleet supply and advertising contract with Ford Motor Co. The agreement replaces an earlier contract set to expire in August of 2007.
The new contract, disclosed in a filing with the Securities and Exchange Commission, applies only to fleet and advertising in the United States and to vehicles branded Ford, Lincoln or Mercury. Ford will pay for half of Hertz's annual advertising costs as long as Hertz meets its yearly minimum purchasing requirements outlined in the contract. To qualify for cost reimbursement, Hertz must ensure that its advertising indicates that Hertz's fleet features Ford vehicles.
The advertising contributions from Ford will be tied to the number of Ford vehicles that Hertz buys during each model year. In the SEC filing, Hertz indicated it expects Ford's 2005 advertising dollars to be less than those in the 2004 model year. Hertz is still free to enter into vehicle advertising and supply agreements with other auto manufacturers in the U.S. and other countries.