Ford has said that it will spin off car rental unit Hertz, a wholly owned subsidiary, after a share offering for the division is completed.
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Ford said in a statement that it filed a registration statement with the US Securities and Exchange Commission for an initial public offering (IPO) for part of its stake in Hertz, the world’s biggest general car rental group.
“The filing is consistent with Ford’s announcement on April 20 that it was evaluating long-term strategic objectives for Hertz,” the statement said.
“Following an IPO by Hertz, Ford intends to divest its remaining ownership interest in Hertz.”
The filing is consistent with Ford’s announcement on April 20 that it was evaluating long-term strategic objectives for Hertz. Following an IPO by Hertz, Ford intends to divest its remaining ownership interest in Hertz.
Hertz operates the largest general use car rental business in the world (fleet of more than half a million vehicles) and one of the largest industrial, construction and material handling equipment rental businesses in North America.
The move is also consistent with the revitalization plan Ford launched in 2002.In addition to payroll downsizing and plant closures, Ford’s plan called for the divestiture of businesses that are not integral to the manufacture and sale of cars and trucks.
At that time, Hertz’s equipment rental division was targeted for divestiture, but Ford could not find a buyer.
Monday’s filing gives Ford a chance to test the waters again and sale to a third party is still an option.
