As part of an initiative by Hertz Corp., Park Ridge, N.J., to install solar electric systems across the United States, the Hertz Equipment Rental Corp. (HERC) facility in Commerce City, Colo., has been converted into a solar power facility.
Installation of solar panels will continue this year at HERC locations in Tucson, Ariz.; Augusta, Ga.; Bogart, Ga.; Norcross, Ga.; Boston, Baltimore; Newark, N.J.; and Harrisburg, Pa.
In February, Hertz announced its solar project plans to install more than 2.3MW of solar PV systems at 16 locations across the U.S. as the first phase of its solar initiative. This includes the installation of solar panels at Hertz facilities in Arizona, California, Colorado, Georgia, Maryland, Massachusetts, New Jersey, New York and Pennsylvania.
“Hertz is committed to reducing costs and to sustainable business practices. Investing in solar energy for these facilities makes good business sense,” Mark Frissora, Hertz chairman and CEO, said in February. “We will now look to additional facilities in the U.S. and internationally to further this important program.”
Hertz also has completed construction of a 235kW solar electric system at the Denver International Airport. That system is expected to produce 342,766kW-hours of AC output and offset about 650,000 lbs. of carbon dioxide emissions annually.
Hertz names new HERC president; considers spinoff
Hertz Global Holdings, Park Ridge, N.J., may consider spinning off Hertz Equipment Rental Corp. (HERC) to concentrate on its car rental business, according to comments made by Mark Frissora, Hertz chairman and CEO, at a Wells Fargo Securities Industrial and Construction Conference in early May.
HERC accounts for about 15 percent of the company’s revenue and is now undergoing restructuring to cut costs under the leadership of Lois Boyd, who was named HERC president in late April. Boyd, who also is a Hertz executive vice president, had been serving as the leader of the company’s Advantage car rental brand.
As the impact of the restructuring becomes apparent in HERC’s operating results, Frissora said Hertz may consider exploring all options, including a spinoff of the equipment rental company.
“We would only do that if we generate positive shareholder value and get a fair valuation for the business. That is a possibility and it is something we might look at in the future,” Frissora said at the conference.
When earlier announcing the appointment of Boyd, Frissora said her senior management experience of managing costs, growing revenue and developing people in highly competitive businesses is what made her the choice to run HERC.
“These are the ongoing challenges for HERC as it continues to rebound from the worst equipment rental recession it is 42-year history. At Hertz and before that at Tenneco, Lois has led corporate-wide cost management programs and had [profit and loss] responsibilities for global growth businesses,” Frissora said.
“Most recently, Lois has led Advantage Rent-a-Car, which Hertz acquired out of bankruptcy in 2009, and the company now generates solid profits on well over $240 million of annualized run-rate revenues. Prior to that, Lois led our companywide
cost management programs, which are on track to save $2 billion between 2007
and 2011,” he said.
HERC location goes solar