Ford to sell Hertz for $15 billion

TiburonJT · 09-13-2005, 12:14 PM

SAN FRANCISCO (MarketWatch) - Ford Motor on Monday said it agreed to sell its Hertz rental car unit to private investors for $15 billion, including debt, to raise cash and focus its efforts on its struggling automotive business.

Ford (F: news, chart, profile) will receive a total of $5.6 billion for its total equity in Hertz, which will be acquired by a group of equity firms including The Carlyle Group, Merrill Lynch Global Private Equity and Clayton, Dubilier & Rice.

"This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business," said Ford CFO Don Leclair, adding that Ford will maintain a "strong business relationship" with Hertz.

Full Article: http://www.marketwatch.com/news/stor...eid=mktw&dist=

AdmiralViscen · 09-13-2005, 12:49 PM

"Ford will maintain a "strong business relationship" with Hertz."

Just in case anyone was afraid that this would make for a reduction in fleet sales.

01cavalier · 09-13-2005, 02:20 PM

A quick way to raise some much needed money, but how long would it last?
The fleet sales reduction wouldnt really be such a bad thing, they arent as profitable as retail sales.

Canuck · 09-13-2005, 02:37 PM

From thestreet.com
Ford Selling Hertz for $5.6 Billion
http://www.thestreet.com/_googlen/st...FREE&cm_ite=NA
By TSC Staff
9/12/2005 5:21 PM EDT

Updated from 4:56 p.m. EDT Ford (F:NYSE - commentary - research - Cramer's Take) definitively agreed to sell its Hertz rent-a-car unit to a private equity group for $5.6 billion.
Ford said it would sell Hertz to Clayton Dubilier & Rice, the Carlyle Group and Merrill Lynch Global Private Equity. The sides valued the deal at $15 billion, including debt. Ford said that it would register to swap $2.3 billion worth of Hertz debt for new securities, and that other Hertz debt would be refinanced as well. The companies expect the deal to close by year-end.

"This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business," said Ford Chief Financial Officer Don Leclair. "Hertz is a world-class company with an experienced management team. We look forward to working with the new owners and intend to maintain our strong commercial relationship with Hertz."

AdmiralViscen · 09-13-2005, 03:05 PM

I was being sarcastic.

AndrewGS · 09-13-2005, 06:27 PM

Quote:

Originally Posted by 01cavalier

A quick way to raise some much needed money, but how long would it last?
The fleet sales reduction wouldnt really be such a bad thing, they arent as profitable as retail sales.

Fleet sales are better than no sales.

Buick61 · 09-13-2005, 06:36 PM

Good. I'm sure Ford can find a way to put that money to good use.

I don't like it when a company over-extends itself. Like when GM had the dish network. Focus your recources on two things: real estate (they don't make land anymore) and your core business. You'll never go wrong with that.

88montess · 09-13-2005, 07:04 PM

Quote:

Originally Posted by 01cavalier

A quick way to raise some much needed money, but how long would it last?
The fleet sales reduction wouldnt really be such a bad thing, they arent as profitable as retail sales.

How many retail sales of the Tarus do you think they had last year.

member12 · 09-13-2005, 07:09 PM

Perhaps Gm should sell one of thier rental units...

Does GM have one of these?

nphillips · 09-13-2005, 07:56 PM

A thread about a Bronco and Hertz in the same day. OJ Simpson, are you out there?

LAMRONH · 09-13-2005, 08:06 PM

Quote:

Originally Posted by member12

Perhaps Gm should sell one of thier rental units...

Does GM have one of these?

Well, they had two...but due to some decision-making talent topside, they are dumping the Century and the LeSabre.

griswold44 · 09-13-2005, 08:10 PM

Quote:

Originally Posted by member12

Perhaps Gm should sell one of thier rental units...

Does GM have one of these?

I think they own Avis.

Buick61 · 09-13-2005, 08:11 PM

I don't know if it still is part of GM, but AVIS was all about Chevy back in the day. First they had an "agreement" with GM that made GM vehicles the main rental cars. Then later on, GM became a minority shareholder.

griswold44 · 09-13-2005, 08:11 PM

Quote:

Originally Posted by 88montess

How many retail sales of the Tarus do you think they had last year.

I heard a whopping 90% of Taurus sales are fleet sales.

kool_zx3 · 09-13-2005, 08:28 PM

I worked for avis and it's about all the carried was GM's. It's funny when people would bitch that thier sick and tired of gettin a **************** impala.

People would be like you guys got 300's.thunderbird's,mustang etc... Then i tell them no we have grand am's and malibu, then i get a click. I hate it when they hang up

09-13-2005, 12:14 PM	#1 (permalink)
TiburonJT 7.0 Liter LS7 V8 Join Date: Apr 2004 Location: Grand Rapids, MI Posts: 5,696	Ford to sell Hertz for $15 billion SAN FRANCISCO (MarketWatch) - Ford Motor on Monday said it agreed to sell its Hertz rental car unit to private investors for $15 billion, including debt, to raise cash and focus its efforts on its struggling automotive business. Ford (F: news, chart, profile) will receive a total of $5.6 billion for its total equity in Hertz, which will be acquired by a group of equity firms including The Carlyle Group, Merrill Lynch Global Private Equity and Clayton, Dubilier & Rice. "This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business," said Ford CFO Don Leclair, adding that Ford will maintain a "strong business relationship" with Hertz. Full Article: http://www.marketwatch.com/news/stor...eid=mktw&dist= Last edited by TiburonJT : 09-13-2005 at 02:41 PM.

09-13-2005, 12:49 PM	#2 (permalink)
AdmiralViscen 7.0 Liter LS7 V8 Join Date: Aug 2004 Location: New York Posts: 7,501	Re: Ford to sell Hertz for $15 billion "Ford will maintain a "strong business relationship" with Hertz." Just in case anyone was afraid that this would make for a reduction in fleet sales. __________________ God Bless the Blue Bullet.

09-13-2005, 02:20 PM	#3 (permalink)
01cavalier 6.0 Liter LS2 V8 Join Date: Jul 2005 Location: Portland, OR Drives: 2007 Cobalt Posts: 4,818	Re: Ford to sell Hertz for $15 billion A quick way to raise some much needed money, but how long would it last? The fleet sales reduction wouldnt really be such a bad thing, they arent as profitable as retail sales.

09-13-2005, 02:37 PM	#4 (permalink)
Canuck 6.0 Liter Vortec V8 Join Date: May 2003 Location: Vancouver Drives: 2005 CTS 3.6, 2005 Envoy Posts: 1,947	Re: Ford to sell Hertz for $15 billion From thestreet.com Ford Selling Hertz for $5.6 Billion http://www.thestreet.com/_googlen/st...FREE&cm_ite=NA By TSC Staff 9/12/2005 5:21 PM EDT Updated from 4:56 p.m. EDT Ford (F:NYSE - commentary - research - Cramer's Take) definitively agreed to sell its Hertz rent-a-car unit to a private equity group for $5.6 billion. Ford said it would sell Hertz to Clayton Dubilier & Rice, the Carlyle Group and Merrill Lynch Global Private Equity. The sides valued the deal at $15 billion, including debt. Ford said that it would register to swap $2.3 billion worth of Hertz debt for new securities, and that other Hertz debt would be refinanced as well. The companies expect the deal to close by year-end. "This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business," said Ford Chief Financial Officer Don Leclair. "Hertz is a world-class company with an experienced management team. We look forward to working with the new owners and intend to maintain our strong commercial relationship with Hertz."

09-13-2005, 03:05 PM	#5 (permalink)
AdmiralViscen 7.0 Liter LS7 V8 Join Date: Aug 2004 Location: New York Posts: 7,501	Re: Ford to sell Hertz for $15 billion I was being sarcastic. __________________ God Bless the Blue Bullet.

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09-13-2005, 06:36 PM	#7 (permalink)
Buick61 7.0 Liter LS7 V8 Join Date: Dec 2003 Location: DC Metro Area Drives: 58 Belvedere; 61 LeSabre; 96 Fleetwood; 07 SRX Posts: 8,487	Re: Ford to sell Hertz for $15 billion Good. I'm sure Ford can find a way to put that money to good use. I don't like it when a company over-extends itself. Like when GM had the dish network. Focus your recources on two things: real estate (they don't make land anymore) and your core business. You'll never go wrong with that. __________________ Used to own: 1959 Cadillac Series 62, 1960 AMC Rambler Six, 1998 Chevrolet Malibu, 2000 Saturn LS2, 2005 Chrysler 300C, 2006 Pontiac G6 GTP

09-13-2005, 07:09 PM	#9 (permalink)
member12 7.0 Liter LS7 V8 Join Date: Jun 2003 Location: Atlanta Drives: pickup truck Posts: 5,367	Re: Ford to sell Hertz for $15 billion Perhaps Gm should sell one of thier rental units... Does GM have one of these?

09-13-2005, 07:56 PM	#10 (permalink)
nphillips 2.0 Liter Supercharged ECOTEC Join Date: Jan 2003 Location: Houston, Texas Posts: 165	Re: Ford to sell Hertz for $15 billion A thread about a Bronco and Hertz in the same day. OJ Simpson, are you out there?

09-13-2005, 08:11 PM	#13 (permalink)
Buick61 7.0 Liter LS7 V8 Join Date: Dec 2003 Location: DC Metro Area Drives: 58 Belvedere; 61 LeSabre; 96 Fleetwood; 07 SRX Posts: 8,487	Re: Ford to sell Hertz for $15 billion I don't know if it still is part of GM, but AVIS was all about Chevy back in the day. First they had an "agreement" with GM that made GM vehicles the main rental cars. Then later on, GM became a minority shareholder. __________________ Used to own: 1959 Cadillac Series 62, 1960 AMC Rambler Six, 1998 Chevrolet Malibu, 2000 Saturn LS2, 2005 Chrysler 300C, 2006 Pontiac G6 GTP

09-13-2005, 08:28 PM	#15 (permalink)
kool_zx3 Level I Members Join Date: Sep 2005 Location: Canada Drives: Ranger Posts: 3,962	Re: Ford to sell Hertz for $15 billion I worked for avis and it's about all the carried was GM's. It's funny when people would bitch that thier sick and tired of gettin a **************** impala. People would be like you guys got 300's.thunderbird's,mustang etc... Then i tell them no we have grand am's and malibu, then i get a click. I hate it when they hang up

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