The Hertz Corporation has entered the low cost car rental market in Australia and New Zealand by acquiring Ace Rental Cars, the second largest discount car rental company in New Zealand. Ace will continue to operate under its existing brand as an independent subsidiary.

"At the price-conscious end of the value brand market, Ace will make an excellent addition to the Hertz family of brands, and will allow us to capture a significant share of New Zealand's growing leisure sector," according to Mark Frissora, Hertz chairman and CEO. "We also look forward to rapid expansion of Ace in Australia, using Ace's value brand expertise and Hertz capital and local resources."

Established 25 years ago, Ace has a fleet of vehicles throughout New Zealand, in Auckland, Wellington, Christchurch, Queenstown, Picton, Greymouth and Dunedin, and in Queensland, Australia, at rental locations in Brisbane, the Gold Coast and the Sunshine Coast.

The purchase of Ace Car Rentals is a progression of Hertz' value brand strategy in the Australasian market, where tourism is a major contributor to the national economies.

Frissora added that Ace would continue its operations as a "super economy car rental provider," operating in parallel with Hertz and Advantage. The Chief Executive of Ace, Mike Chatterley -- whose father co-founded the company -- will remain in his current role.

In addition to entering the domestic low cost rental markets in Australia and New Zealand, the acquisition of Ace Rental Cars enables the Hertz group to compete for the business of budget international travelers visiting the Australasian region.

"Ace appeals to a broad range of tourists, especially independent travelers. We recognize the expertise and success of the Ace team in their segment, who will continue to operate independently," according to Frissora.