|January 11, 2000|
BUDGET GROUP'S PREMIER LOCATIONS RE-BRANDED BUDGET RENT A CAR
|Across 16 U.S. states today, Budget signs and banners are replacing Premier Car Rental signs to proclaim the integration of Budget Group's insurance replacement division with its retail Budget Rent a Car operations.|
These newly Budget-branded locations will not only continue to provide rental cars to customers whose personal vehicles are in the repair shop as a result of an accident, theft or mechanical repair, they will also serve retail car rental customer's needs. Integrating Budget and Premier under the Budget brand name will allow Budget to comprehensively serve all segments of the local market under one roof.
"Offering insurance replacement services under the Budget brand name combines the strong name recognition of Budget, the third largest car and truck rental system in the world, with the capabilities to service major insurance companies seeking nationwide agreements," stated Mark Sotir, president, North American Vehicle Rental Operations. "This strategy gives us the nationwide distribution insurance companies require, along with Budget's world class customer service, quality vehicles and 24-hour roadside service, putting us in a position to address the various needs of our customers." Insurance replacement rentals account for nearly a quarter of all rental car revenues in the U.S. It is the fastest growing segment in the industry. Premier Car Rental, the nation's third largest company serving the insurance replacement market, was acquired by Budget Group in August of 1997.
"With nearly $7.2 billion in car rentals taking place away from airports, the integration of Budget and Premier makes perfect sense. Budget was first established and developed in the local market over 40 years ago, and we've continued to build on our local expertise ever since," continued Sotir. "This integration will expand our distribution and generate incremental revenue, as well as reduce operating costs and improve fleet utilization."