Hertz Signs Fleet, Advertising Agreement With Ford

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.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Another Ridiculous “Used Fleet Vehicle” Scandal

While media reports concentrate on the sting and the “outrage,” where’s the empirical evidence that fleet vehicles are less mechanically sound than vehicles sold from private owners?

Will IoT Herald a New Era in Fleet Efficiency?

With the ELD rule finally in effect, small fleet operators need to hunt for new efficiencies. In transportation logistics, Internet of Things (IoT) systems could have similar lasting impacts as telematics.

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

Job Finder: Access Top Talent. Fill Key Positions.

>