Hertz 2010 Annual Report Download - page 38

ITEM 1. BUSINESS (Continued)
In Europe, in addition to us, the principal pan-European participants in the car rental industry are Avis
Europe plc (which is not an affiliate of ABG but is operating under a license from ABG), which operates
the Avis and Budget brands, and Europcar. Europcar also operates the National Car Rental and Alamo
brands in the United Kingdom and Germany, and through franchises in Spain, Italy and France. In
certain European countries, there are also other companies and brands with substantial market shares,
including Sixt AG (operating the Sixt brand) and Enterprise (operating the Enterprise brand) in the
United Kingdom, Ireland and Germany. In every European country, there are also national, regional or
other, smaller companies operating in the airport and off-airport rentals markets. Apart from Enterprise-
branded operations, all of which Enterprise owns, the other major car rental brands are present in
European car rental markets through a combination of company-operated and franchisee- or licensee-
operated locations.
Competition among car rental industry participants is intense and is primarily based on price, vehicle
availability, service, reliability, distribution locations and product innovation. We believe, however, that
the prominence and service reputation of the Hertz brand and our extensive worldwide ownership of car
rental operations provide us with a competitive advantage.
Worldwide Equipment Rental
Operations
We, through HERC, operate an equipment rental business in the United States, Canada, France, Spain,
Italy and China. On the basis of total revenues, we believe HERC is one of the largest equipment rental
companies in the United States and Canada combined. HERC has operated in the United States since
1965.
HERC’s principal business is the rental of equipment. HERC offers a broad range of equipment for
rental; major categories include earthmoving equipment, material handling equipment, aerial and
electrical equipment, air compressors, pumps, generators, small tools, compaction equipment and
construction-related trucks.
Ancillary to its rental business, HERC is also a dealer of certain brands of new equipment in the United
States and Canada, and sells consumables such as gloves and hardhats at many of its rental locations.
HERC’s comprehensive line of equipment enables it to supply equipment to a wide variety of customers
from local contractors to large industrial plants. The fact that many larger companies, particularly those
with industrial plant operations, now require single source vendors, not only for equipment rental, but
also for management of their total equipment needs fits well with HERC’s core competencies.
Arrangements with such companies may include maintenance of the tools and equipment they own,
supplies and rental tools for their labor force and custom management reports. HERC supports this
through its dedicated in-plant operations, tool trailers and plant management systems.
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