Budget Rent a Car South Africa’s licence agreement has been transferred to Zodiac Limited, a subsidiary of Avis Europe. But how will it affect the rental company’s operations?

Budget Rent a Car South Africa’s licence agreement has been transferred to Zodiac Limited, a subsidiary of Avis Europe. But how will it affect the rental company’s operations?

Managing director of Budget Rent a Car SA Tony Langley said recently that Budget Rent a Car and Avis in South Africa would remain independent and the agreement will therefore have no real effect on the local car rental industry.

“Budget Rent a Car SA will remain a separate licensee of Avis Europe plc, as is the case with Avis South Africa," he said.

The new franchise agreement follows the announcement by the Avis Europe Group that it had acquired the rights to operate the Budget brand in Europe, the Middle East and Africa for R220 million.

“Avis Europe Group remains committed to the Budget franchise network,” Langley added. “During the next few months, Avis Europe will focus on the stabilisation of the Budget Rent a Car business with the support of a central management team, and will also invest in commercial strategies to take the business forward.”

Budget Rent a Car is a wholly-owned subsidiary of McCarthy Limited.

Original article from Car