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Hertz challenge complacency charge

5th September 1981
Page 14
Page 14, 5th September 1981 — Hertz challenge complacency charge
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Which of the following most accurately describes the problem?

WE WELCOME your criticisms regarding service in the rental industry (CM, August 15). Hertz, who jealously guard a high service reputation, are concerned at your findings; with the high volume of rentals and leases we service, we strive to eliminate the human error factor.

Any lessening of the standards is the exception rather than the rule, and this will be borne out by our customers who experience our service day in and day out. However, we appreciate that service can always be improved on and your comments are taken in a .constructive manner.

But we challenge the headline of the article and would comment that the rental industry as a whole is far from complacent. Since 1972, rental companies have sought to improve reputation and service to such an extent that the UK rental standards are the best in Europe, and have now overtaken those in the United States.

Over the years the cowboy , operators have been replaced by the professionals. With the coming of the recession, the major truck rental companies have made the conscious decision to tighten their operations by reducing their fleet and their location network, instead of reducing maintenance standards. The price war has, it is agreed, made the rental market highly volatile and early last year Hertz warned the rental industry and its customers of the dangers of unrealistic rates.

Now the rate war has taken its toll: several smaller rental companies have had to close and the major companies remaining must now return to a realistic rate structure. Hertzincreased their prices in April and will again increase at the end of September. If service standards are to be maintained and improved such action must be taken. Commonsense must prevail with the right rate for the right service.

The major rental companies, will, we believe, see commonsense. The industry's performance and continued expansion depends on reinvestment and this is where the crunch comes. Operate too long without making profits, keep your fleet longer than viable, and then you simply go out of business. At present the rental industry is far from complacent.

ANGELO SALMASI Hertz Truck Rental & Leasing lsleworth, Middlesex