Car Rental Company Sixt Also Expects Rapid Growth In

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Car Rental Company Sixt Also Expects Rapid Growth In
Car Rental Company Sixt Also Expects Rapid Growth In

Video: Car Rental Company Sixt Also Expects Rapid Growth In

Video: Car Rental Company Sixt Also Expects Rapid Growth In
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More and more tourists are renting a car on vacation worldwide. This also spurs the business of Germany's largest car rental company Sixt.

The company is growing rapidly, especially abroad. And "there are many indications that the upswing will continue in 2019," said CEO Erich Sixt on Thursday. A new complete offer promises a further boost: Perhaps this year customers will receive car sharing, rental cars and chauffeur services bundled in one app via smartphone.

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The technology is currently being tested at six German airports. He could not yet give a fixed start date for the app, but not much is missing. “Maybe this year,” said Sixt. The company had sold its stake in the car sharing provider DriveNow to its previous partner BMW in January. BMW wants to merge the service with the competing offer Car2Go from Daimler.

Car sharing without a pick-up station is only worthwhile in cities

Sixt said that car sharing with rental cars without fixed pick-up and drop-off stations is only worthwhile in large cities and is “only a very small piece of the puzzle in the mobility spectrum”. As a car rental company, however, he can offer vehicles anywhere by the minute, by the hour, by the day or by the week via smartphone. By the end of the year, Sixt could have equipped 20,000 rental cars with the necessary telematics. In the USA in particular, this opens up “a fantastic growth market”.

In the first half of the year, Sixt increased sales by 11 percent to 1.18 billion euros and tripled pre-tax profits to 326 million euros. Even without the 196 million euros from the DriveNow sale, profit would have increased by 26 percent.

Foreign sales increase

The most important drivers are growth in the tourism business and better vehicle utilization, said company patriarch Sixt and CFO Julian zu Putlitz. Foreign sales increased by 18 percent. Sixt now has 54 locations in the world's largest rental market, the USA, and more are being opened in Denver, Chicago and Hawaii. In 2021, by 2025 at the latest, Sixt wants to generate at least one billion dollars in sales in the USA and as high profit margins as in Europe.

Neither the strong dollar exchange rate nor the crash of the Turkish lira had any notable impact on profits, said zu Putnitz. The franchise partner in Turkey benefits more from the weak lira and pays almost 6 percent of sales to Sixt. In 2018 as a whole, he expects a “significant” increase in sales and profits. He did not want to give a more precise forecast. But so far things are looking up at home and abroad, in rental and leasing, in private and business customer business: "We are very optimistic." (dpa)

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