Roy Cokayne
AVIS Rent A Car Southern Africa is in discussions with Avis Budget Group to take over the exclusive Budget car, van and truck rental franchise for Southern Africa from Bidvest.
This follows the current Bidvest Car Rental and Avis Budget Group agreement coming to an end on Friday and a separation agreement being concluded to ensure a smooth transition through to the end of next month.
Keith Rankin, the chief executive of Avis Rent A Car Southern Africa, a subsidiary of and part of the automotive and logistics division of listed distribution group Barloworld, confirmed yesterday it was in discussions with the Avis Budget Group but nothing had been finalised yet.
His comments follow Bidvest Car Rental, a subsidiary of listed Bidvest, reporting on Monday that it would cease to operate as Budget car, van and truck rental in Southern Africa effective from February 28 and trade in future as Bidvest Car Rental.
Business Report on Monday incorrectly stated that Bidvest would cease to operate the Budget car, van and truck rental franchise from today.
Rankin said they were looking at the Budget franchise but must see if they can find common ground on the way forward with Avis Budget Group.
Rankin believed Avis Budget Group would look to “find a solution” to the Budget franchise in southern Africa in the South African market.
Attempts to obtain comment from Avis Europe, the UK-based company acquired by the Nasdaq-listed Avis Budget Group in 2011 that holds the licence to operate the Avis and Budget brands in Europe, the Middle East and Africa, were unsuccessful.
Bidvest has managed the Budget car and van rental franchise in Southern Africa for more than 20 years.
Lindsay Ralphs, the chief executive of Bidvest South Africa, said the separation discussions had followed in the spirit of their long-standing relationship and both parties were fully committed to ensuring there was not any disruption to customers and partners.
“Over the coming month, Bidvest will embark on the launch of Bidvest Car Rental, a truly and Proudly South African domestic car and van rental business,” she said.
Troy Warfield, the Avis Budget Group EMEA commercial and licensee director, said that this had been an amicable decision that they believed would continue to serve the needs of all their local and international customers.
“Both parties are fully committed to collaborating to ensure we continue to provide the same high level of service to all our customers,” he said.
Paulette McGhee, the chief executive of Bidvest Car Rental, said the existing infrastructure, management and team, which had grown to 850 people, would not be affected by this decision.
Bidvest shares eased 0.17 percent to R313.76 yesterday.