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Hertz looks to China for acquisitions

Bloomberg News / August 25, 2011

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SHANGHAI - Hertz Global Holdings Inc., the largest publicly held US rental-car company, is seeking acquisitions in China to increase its market share in the world’s biggest vehicle market.

Hertz and General Electric Co. also said today they signed an agreement to cooperate on promoting the use of electric vehicles in China. They will offer companies and government agencies the option to lease both vehicles and charging facilities in China, according to a statement.

Hertz expects to triple rental revenue in China to almost $10 million this year, Richard Broome, a spokesman for the Park Ridge, N.J.-based company, said yesterday.

“China is a big growth market for us, and we want to get big fast,’’ Broome said in a phone interview. “We want to expand exponentially here over the next 24 to 36 months, through organic growth and or acquisitions.’’

Hertz wants to expand in a rental-car market that it estimates at about $2 billion a year. The industry’s expansion will likely outpace economic growth this year, Broome said. China’s gross domestic product rose 9.5 percent in the second quarter from a year earlier, according to the statistics bureau.