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Avis Budget Group Restructures Its Truck Rental BusinessOctober 27, 2006 By: David Eisen Travel Agent
Avis Budget Group announced today that it will restructure the management and operations of its Budget Truck Rental division by aligning the business more closely with its car rental operations. The move is expected to save the Parsippany, NJ-based vehicle rental service annual savings totaling $5 million beginning in 2008. Budget Truck Rental's current headquarters in Denver, CO will be closed in early 2007 and certain back-office functions will be consolidated within Avis Budget Group's other facilities. Gerald Riordan, president of Budget Truck Rental will also leave the company in early 2007. "After a comprehensive evaluation of the rental truck industry and Budget Truck Rental operations, we have renewed our commitment to this business and concluded that we can drive cost savings by more closely aligning our truck and car rental management operations," said Ronald Nelson, chairman and CEO, Avis Budget Group. Joseph Ferraro has been named vice president, operations for Budget Truck Rental, overseeing the daily management of Budget's network.