Submission Number: 00006
Received: 11/26/2012 8:46:54 PM
Agency: Federal Trade Commission
Initiative: Proposed Consent Agreement In the Matter of Hertz Global Holdings, Inc., File No. 101-0137
Attachments: No Attachments
Commissioner Roach is correct in his fear that this merger will create a consumer nightmare. Hertz could of easily built Advantage to be competitive in the Rental car market, but choose not to do so. They showed no marketing let alone company support to Advantage. Now HERTZ is in debit and are taking out more debit just to aquire DTG. DTG was close to bankrupty when DTG took the same avenue and took loans out and overpaid for their franchise they wanted to buy back. Hertz's is in debt taking out more debt and overpaying for DTG. We are in a failng economy Hertz will have to raise their rates and DTG rates plus major lay offs just to stay a float. They are foolishly thinking DTG money in the bank will save them. DTG made it through the economy not because of rental rates but, their Airport parking establishments and remarketing their cars. Remarketing/ car sales saved DTG from bankruptcy. Hertz only wants the title of being number one again. Being so in debit and not learning from DTG mistakes in 2008 shows that they too may find themselves filing for bankruptcy resulting in Enterprise taking even more market shares. In markets where the FTC is asking Hertz to remove DTG counter out of the APO. Hertz will not get those markets shares Enterprise will. This merger is only going to cement Enterprises strong hold on the rental car market. The smaller operators will only be able to hold out for so long. Commissioner Roach is correct that this will not be a competitve market when this merger becomes finale.
The only ones that are benefitiing from this merger are the board of directors who were given shares by the company they were suppose to protect and serve. When Hertz closes DTG brands just so they can stay a float all Mr. Roach fears will be realized. The economics dept should of never allowed this merger to every of gone this far. What is really sad is most consumers and people who deal in this market day in and day out do not even know how or who to contact to give their input that should of been reviewed before the decision was made. Hertz is already contacting DTG headquartes to change rates on the DTG side which should be against antitrust regularations while they are still in control of Advantage brand. Someone needs to protect the consumer from price fixing.