A capacity crowd of 83 at the January Naples Press Club luncheon heard Richard Broome, Hertz Executive Vice President, Corporate Affairs and Communication, talk about the current challenges facing corporate Hertz.
wants to be a good corporate citizen in Collier and Lee Counties, and in the world at large, and that Hertz has experienced a fantastic reception in Southwest Florida since the company announced (in 2013) that they would be moving its corporate headquarters to Estero, Fla., from Park Ridge, New Jersey.
reported that three of Ichan's people are now on the new Hertz board, and that Ichan wants Hertz to be successful and that he
will work to achieve that.
"John has set an example to the rest of us regarding if you have to make a change, make it quickly, humanely and then move on," Broome
"They were control issues," Broome
"We need to make sure what all the problems are, deal with them and move on.
is under an accounting review because of those financial errors, so there is a total blackout period of any information sharing.
is looking at 2015 as a year of transition and getting better, and that 2016 is the year when Hertz
will hit its stride.
presentation by saying, "We're committed to being in Estero.
Our employees love being down here in Florida.
Those that moved here have found communities, homes and schools that suit their needs, and they are happy, especially with the great Florida weather."
During the question and answer session, Broome
answered questions about the tax incentives Hertz received to relocate to Florida, which equals $14 million from the state of Florida, Enterprise Florida and Lee County.
Over 20 years, that will increase to a $100 million incentive package, primarily in tax relief.
In answering a question about the core business vs. diversification, Broome
answered: "We are aware of other models such as Uber Ride Sharing, etc., but first we want to get our core rental business fundamentals right.
said that Hertz's
North American business is three to four times the size of its Western European business, followed by the growing business in New Zealand and Brazil.
When asked about how falling gas prices affect Hertz's
main business, Broome
answered: "People have more money to spend, take more vacations, etc."
In answering the question about Hertz's
current business plan, Broome
said: "We're refreshing our fleet and bringing in younger cars.
Cars are our biggest cost, about $7 million/year, and our second biggest cost is labor.
The airport business is our largest and most profitable; our off-airport business is the second largest."
The subject of the new president was raised, and Broome
said: "We first need to work internally to get the management team and processes in place.
Answering a question about his
specific job, Broome
said, "Ideally, all media and the public and the stockholders are informed at the same time-that is our plan.