Company says affiliated body shops face few immediate changes
Few operational changes are expected "for the foreseeable future" following Enterprise Rent-A-Car's purchase of Vanguard Car Rental and its Alamo Rent A Car and National Car Rental divisions. Collision shops with arrangements regarding car-rental referrals, shared facilities, affiliated marketing initiatives and vehicle repair services can continue conducting business as usual, says Laura Bryant, an Enterprise spokeswoman. "I don't think that will change at all."
The Vanguard/National/Alamo brands — which are predominantly sited near airports — will retain their individual corporate identities, and it is unlikely they will conflict with a neighboring Enterprise location in any given community, according to Bryant. "There's very little overlap," she told ABRN in an interview.
Joint teams from both Enterprise and Vanguard, though, already have begun an integration review process, according to Andrew C. Taylor, Enterprise's chairman and CEO.
"For the foreseeable future, Enterprise and Vanguard will continue to operate as separate subsidiaries while we take the necessary time to carefully review all aspects of this acquisition," he explains. "However, we intend to immediately begin leveraging the combined expertise and strength of Enterprise and Vanguard to create even greater overall value for consumers and business customers alike."
The Taylor family, which founded Enterprise 50 years ago in the basement of a St. Louis car dealership, acquired Vanguard/National/Alamo from Cerberus Capital Management LP for an undisclosed sum. The transaction, first announced in March, closed on Aug. 1.
"Over time and with careful study, we will determine how best to join these operations and create the most comprehensive service provider in the history of this industry," says Taylor. "Already on 'Day 1' we are implementing programs that allow each company's corporate customers to participate in programs offered by its new sister company; for example, offering free memberships in National's Emerald Club for Enterprise corporate customers."
Greg Stubblefield, a 25-year Enterprise executive, will replace the retiring William E. Lobeck as president of Vanguard. Stubblefield, who most recently served as president of Enterprise's California and Hawaii operations, is relocating to Tulsa, Okla., where he will operate from Vanguard's headquarters.
"The free Emerald Club offer is just the beginning," says Stubblefield. "Enterprise and Vanguard together will represent the most comprehensive and competitive service provider the car rental industry has ever seen.
"My goal is to learn from the dedicated Vanguard employees, and to do what I can to help build upon their success. The people of Vanguard have worked hard and overcome significant obstacles to remain one of the most admired service providers in the airport rental car market. I intend to help this team leverage the strengths and synergies of the Enterprise transaction in order to take this business to even higher levels of performance."
The scope of the two combined companies now amounts to $11.7 billion in annual revenue; 10,683 locations; 1.1 million vehicles; and 74,169 employees.
"As the dynamics of our industry continue to evolve, it's clear to us that the future belongs to the service providers who offer the broadest array of services for anyone who needs or wants to rent a car," says Taylor. "Joining forces with National and Alamo will enable us to do just that, from replacement and leisure rentals to small-business and corporate customers. This combination will strengthen our ability to deliver outstanding service and value to our customers — whatever their needs, and wherever they rent from us."
In addition to the customer benefits, this move makes great sense for the employees of both organizations, as well, Taylor contends. "Since my father founded Enterprise, our success has been built on his simple words: 'Take care of your customers and employees first.' What we're doing here is very much in keeping with that commitment. This transaction will give our combined operations a comprehensive range of assets that will enhance our ability to compete vigorously in every segment of the industry and for all kinds of customers. All in all, this is a tremendous investment in our ability to provide more and better opportunities to employees on both sides of the transaction.
"We respect and admire what the National and Alamo teams have accomplished. They have met some tough challenges over the past several years and emerged as a very solid company that has never lost focus on quality customer service and operational excellence — a focus that is very much in line with our own. We're excited about the opportunity to move forward as one organization."
Lobeck, Vanguard's outgoing president and CEO, is equally enthusiastic. "By combining our companies, we will be able to offer an expanded network to better serve the needs of car rental customers and will continue to be able to deliver the award-winning service they have come to expect with each rental experience," he says.
Taylor says all parties involved in the acquisition are excited about it because it expands the Enterprise family.
"All of us on both sides of this transaction are now part of a family-owned company that is dedicated to three things: listening to and satisfying our customers; creating opportunities for our employees; and achieving long-term sustainable growth."
