National Car Rental System Inc. has completed its reorganization program and is mapping plans for a full-scale expansion program.
R. E. Dumas Milnor, new board chairman and one of the major stockholders and organizers of the reorganized rental company, said that National is now a publicly held corporation and will own "a substantial number" of the rental and leasing offices operated as part of the nationwide system.
He said National now has capital assets of $3,000,000 as a result of the sale of common stock and issuance of 6 per cent, 10 year convertible subordinated debentures. Proceeds are being used, he said, to purchase assets of the predecessor company of the same name and to establish and stall sales offices, acquire system-owned rental offices and provide additional working capital. Additional financing of $12,000,000 has also been arranged for the purchase of vehicles for the company-owned stations, Milner said.
Named president and chief executive officer of the reorganized company was Kred M. Class, former executive vice president and director of Hertz Corp. Class said National Car plans to add stations in "at least" 100 cities across the country during the first year of operation. This would be a gain of 20 per cent over the 477 domestic locations operated through the predecessor company, he said.
In addition to these acquisitions, the company will buy and operate facilities previously owned by National licensees in New York City, Newark, N. J., Washington, D.C., Chicago, Dallas, Atlanta, New Orleans, Pittsburgh, Louisville, and Jacksonville, Fla.
Major emphasis also will be placed on expanding truck rental operations and expanding car rental sales and reservation offices in principal metropolitan cities. Class said the first of these expanded offices would be opened in New York City with others to follow in Chicago, San Francisco, Los Angeles, Washington, D.C., Atlanta, Dallas and Detroit.
Class said that since airline passengers represent a substantial portion of all car rental business, it is only natural to choose these eight cities for expanded operations since they account for 15 per cent of the total commercial airline volume.
According to Class, National Car has budgeted more than $2,000,000 for national and local advertising in 1963, more than double the expenditure of the old company. Plans also are being made to revise and expand the company's credit card program.