Lisle, Illinois (ots-PRNewswire) - Budget Group, Inc. (NYSE: BD)
announced today that it is reorganising its French network of rental
locations into major regional franchise territories. Included in the
reorganisation is the refranchising of nearly all of the Company's
corporate French locations, transforming the country into a ninety
percent franchised operation.
Budget Rent a Car International has negotiated agreements with a
number of investors, nearly all of whom are current Budget
franchisees. These transactions are expected to close throughout
April and May. The refranchising represents the second step in the
execution of Budget's scale-back strategy to substantially reduce
financial and operating risk in Europe. The Company recently
completed the sale of its Birmingham and Manchester, England
locations to a Budget franchisee.
Jack Frazee, president and chief operating officer of Budget Rent
a Car International stated, "This restructuring program mirrors what
we have already implemented in the UK and are now starting in other
European corporate locations. The investors we have secured for the
expanded regional franchises were selected on the basis of their
industry expertise, local market knowledge and strong focus on high
levels of customer service."
Meanwhile, Budget will retain corporate control of select
locations at the Paris and Nice gateway airports, as well as Paris
railway stations and downtown locations. In addition, Budget will
continue to manage the administration of large corporate accounts and
serve the growing international customer base from the rest of
Europe, the Middle East, Africa, North America and Asia Pacific.
Through the reorganisation, Budget France will also be able to
achieve better fleet utilisation and higher levels of service through
a more effective management of the business. The strategy will enable
Budget France to combine the flexibility offered by a franchise
network with the service guarantee of a corporate network.
Budget Group, Inc. owns Budget Rent a Car Corporation and Ryder
TRS. Budget is the world's third largest car and truck rental system
and Ryder TRS is the nation's second largest consumer truck rental
company. For more information, visit the company's Web site at
Statements made in this press release that are not historical in
nature may include 'forward-looking statements' within the meaning of
the federal securities laws. It is important to note that these
statements involve a number of risks, uncertainties and other factors
that could cause Budget Group, Inc.'s actual results to differ
materially from those projected in such forward-looking statements.
Additional information concerning such matters is contained in
documents filed by the Company with the SEC, all of which are
available from the SEC.
ots Originaltext: Budget Group, Inc.
Media, Allison Striegel,
Phone +1 630-955-7419, or
Investors, Sarah Lewensohn,
Phone +1 630-955-7602,
both of Budget Group, Inc.
Company News On-Call:
fax, +1 800-758-5804, ext. 121583