Navigation Solutions Becomes Wholly-Owned Subsidiary of Hertz

Car rental company Hertz has acquired from Thales Navigation the remaining 35% stake in Navigation Solutions, the operational arm of Hertz's NeverLost in car GPS system.

80,000 Neverlost units are currently in service in North America and almost 1 million Hertz Gold members include NeverLost as part of their profile preference, meaning they want the GPS navigation system every time they rent a car.

"NeverLost's GPS-based technology and customized travel content package has been an instrumental element of our strategy to differentiate the car rental experience and it will play a significant, strategic role in the future of car rental as we envision it. Now, coupled with our proprietary Eileo car sharing technology, NeverLost will enable Hertz to transform customer service by creating an unparalleled in-car rental experience," commented Mark P. Frissora, Hertz Chairman and Chief Executive Officer.

"For well over a decade, including 2011, NeverLost revenues have grown solidly and generated strong profit margins. While Navigation Solution revenues are already fully reflected in our consolidated results, the acquisition will be accretive to earnings in 2012."

Knowing that Neverlost rents for $12.99 per day, these profits are not completely surprising.