Hertz Forms Joint Venture with Magellan
14 December 1998
Hertz Forms Joint Venture with Magellan to Equip 50,000 Rental Cars in the US, Europe and Canada with 'Next Generation' Navigational TechnologyPARK RIDGE, N.J., Dec. 14 -- The Hertz Corporation , the world's largest car rental company, and Magellan Corporation, satellite access products subsidiary of Orbital Sciences Corporation , have announced an agreement to form an exclusive joint venture, that will oversee the expansion and operation of Hertz' popular vehicle navigation system, NeverLost(R) in rental cars throughout the US, Europe and Canada. The joint venture will purchase from Magellan 50,000 vehicle navigation and driver information systems, utilizing "next generation" navigational technology, for installation this coming summer in Hertz' fleet, including Lincoln Towncars and Ford Tauruses. The joint venture will also install, maintain, market, advertise and set pricing for the new vehicle navigation systems globally. "The Hertz-Magellan joint venture is consistent with our commitment to customer service and the provision of cutting-edge technology to our customers," said Robert J. Bailey, Hertz Senior Vice President, Quality Assurance. "It is also an innovative means of rapidly deploying what is a global technology." Specific terms of the agreement were not disclosed. "Vehicle navigation technology has proven its value to the car rental industry and our joint venture with Hertz builds on our prior success," stated David W. Thompson, President and CEO of Orbital Sciences Corporation. "We're extremely excited about the development of our new, advanced vehicle navigation and driver information systems and equally excited to be Hertz' exclusive in-car navigation supplier," continued Thompson. These next generation vehicle navigation and driver information systems, developed and manufactured by Magellan, will be available at Hertz locations in the US, where the directional data base covers the 48 contiguous states; in France, Germany and the United Kingdom; and in Vancouver and Toronto, Canada. "This is seamless, global technology. The Hertz customer in Germany will use the same NeverLost unit at home that he finds in his rental car in Miami when he vacations abroad," continued Mr. Bailey. Customers simply input a local street address or may choose from a range of destinations including hotels, airports, restaurants and other points of interest. The new user-friendly route guidance systems will provide easier and more detailed turn-by-turn driving directions with the increased data base coverage. Also, Hertz' existing units provide voice prompts in English only, the new units will provide customers with the choice of six additional languages, including, Dutch, French, German, Italian, Japanese and Spanish. The new system will utilize an improved graphical interface that clearly illustrates roads, highways and intersections including jug handles and traffic circles. Also, each unit will be equipped with an Emergency Location Button, which immediately displays the vehicle's exact location on the screen. So, if a customer requires assistance from Hertz' Emergency Roadside Assistance, they can easily let Hertz know exactly where they are. In 1995, Hertz introduced its Magellan-manufactured Hertz NeverLost(R) on- board navigation system in the US. Upon initial roll out, Hertz installed 600 units in its fleet at Hertz airport locations in Atlanta, Chicago, Detroit, Los Angeles, Miami, the New York Metropolitan area, Orlando, San Francisco and Washington D.C. A year later, Hertz expanded this optional service by installing over 7,500 additional Hertz NeverLost(R) units, bringing the total number to over 8,000 available for rental. Currently, Hertz offers NeverLost(R) units at over 50 Hertz locations in 35 cities. Cars equipped with the NeverLost(R) navigation system are available at an additional $6.00 per day. Manufactured by Magellan Corporation of Santa Clara, California, NeverLost(R) combines Global Positioning System (GPS) satellite technology with dead-reckoning and map matching technology. Navigation Technologies Corporation of Sunnyvale, California developed the NavTech(TM) Navigable Map Database used in the NeverLost(R) system. Under the new joint venture program, the existing units will be replaced with Magellan's next generation vehicle navigation and driver information system. "Hertz has been leading the industry in providing GPS technology for travelers since 1995, but our joint venture with Magellan gives us technological superiority in the rental car industry with regard to navigation systems," said Mr. Bailey. Magellan was incorporated in 1986 and introduced the first hand-held GPS receiver in 1989. Today, Magellan designs and sells satellite-based automobile navigation, communications and guidance products to original equipment manufacturers, commercial fleets and consumers. Hertz operates a fleet of 500,000 vehicles from over 5,500 locations in more than 140 countries.