PARK RIDGE, N.J. -

Revealed Wednesday, Penske Automotive Group will be joining Hertz’s franchising network.

The companies explained this partnership for the Memphis, Tenn., market is part of  Hertz's company-wide initiative aimed at increasing its presence in the off airport car rental markets.

"Hertz is pleased to enter into a partnership with Penske Automotive Group to encompass the franchising of the Memphis market," commented Mark Frissora, chairman and chief executive officer for The Hertz Corp.

"Penske is a premier brand and provides a strong platform for further enhancing the local, neighborhood market.  In addition to being a well-respected company, we're confident that Penske's high levels of customer service will create a seamless experience for our customers. By partnering with Penske, Hertz will be able to accelerate our growth in key U.S. markets and further strengthen our franchising network. Over time, we expect to see our franchising relationship grow into other selected markets throughout the country,” he continued.

Highlighting the details of the agreement, the news calls for Penske Automotive Group — which came in at No. 3 in Auto Remarketing's Top 125 Used-Car Dealer Groups feature —  subject to the completion of closing conditions, to purchase the assets of Hertz's existing Memphis market, “providing the opportunity to operate more than 15 Hertz airport and off-airport locations,” officials explained.

Moreover, Hertz will be providing Penske with “a full array of services” in an effort to help them expand their market presence.

"We are confident that the commercial and operating synergies between Hertz's car rental and Penske's car dealership businesses will benefit our dealership network and Hertz's rental operations," commented Roger Penske, chairman and chief executive officer of Penske Automotive Group. 

"Hertz's ability to harness technology and deploy the latest customer service innovations, coupled with its established customer base, will bring increased value to Penske Automotive Group's local operations,” he continued.

Lastly, the companies noted the agreement with Penske is part of Hertz's strategy to transition select corporate markets to franchisee operations. 

In other recent news from from the rental company, Hertz Global Holdings and Dollar Thrifty Automotive Group announced in last August that the two companies have entered a definitive merger agreement. Under this deal, Hertz would purchase Dollar Thrifty for $87.50 per share in cash, translating into a purchase worth a corporate enterprise value of approximately $2.3 billion.

Each of the two companies’ boards has unanimously approved the transaction.

For more information on the deal, see the Auto Remarketing story here.