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PMINJ PROJECT OF THE YEAR

“Changing the relationship between everyone and the car,

everywhere”

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Project Summary

New line of business for HertzBased out of Park Ridge, NJ Team of more than 25 global employeesRevolutionize the car sharing market Utilize the latest in interactive telematicsMembers use cars on a pay-as-you-go basisConvenient and socially-conscious alternative to car ownership

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Integration Management

First rental car company to launch global car sharing Executive Challenge: Create new revenue opportunities and establish a new customer baseObject: Build program that revolutionizes industry 40 departments combined forces during implementation phase Management team conducted weekly meetings to discuss highlights, challenges and ideas

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CharterMission: Changing the relationship between everyone and the car, everywhere

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Planning Process Group

Research Steering Committee creation Held 3 day educational/brainstorming meeting to define project. Objectives included:

o Pricing: Align and agree on car sharing pricing structureo Marketing: Member acquisition and retention; develop an acquisition plano Legal/Policy & Procedures: Define terms & conditions and trade markingo Public Relations: Developed global PR plan o Sales: Develop initial sales strategy; create training program for existing sales forceo Fleet: Strategy formation, leveraging existing purchasing power and infrastructureo Insurance: Create insurance packageo Operations: Develop parking acquisition strategyo Customer Support: Develop a plan for leveraging Hertz’s existing Member Care Centero Marketing: Name, logo, branding, advertising, website, and member experience o Human Relations: Create compensation and bonus plan, job descriptions

Conducted follow-up meetings to finalize project management plan

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Scope Management

Vision: First choice for total mobility solutionsCar sharing a new and growing solution

Focus: Car sharing global leaderProject lead helped define and develop deliverables and success measurementsAssigned responsibilities and deliverablesAttainable through utilization of available resourcesLeveraged Hertz resources: purchasing power, customer service center and a trusted and established global brand

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High Level Work Breakdown Structure

Global Coordinator

Sponsors

Project Manager - US

Project Manager - EU

Financial Act. & Tax

Insurance

Financial Planning

Executive Steering Team

MCCTraining HR

SalesImplement. Team

Internal AuditIT – Eileo

IT – Financial Billing

PR

Marketing

Legal

In Car Technology

IT -Website

Policies & Procedures

Pricing Fleet

Operations

Cross Functional Domain Leads Panel

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Quality Management

FMEA (Failure Mode and Effects Analysis)Beta launch to test technology and identify

potential issues All usage scenarios tested (i.e. booking

and canceling a reservation; missing card) Customer beta launch tested enrollment,

reservations and usage. Questionnaire sent to all beta testers

Feedback used to refine processes

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Risk Management

Risk management/FMEA plan developed Risk register and probability and impact matrix defined, assessed, and prioritized risksRisk statuses and response plans monitored Plan reviewed, scoring severity,

occurrence, and detection of failure points

HOW FMEA HELPED THE LAUNCHHundreds of potential failure points analyzed, i.e.:

Stability of Eileo Vehicle Breakdown while in use How to start a Prius/Hybrid

At launch, more than 400 failure points addressed

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Time Management

Ambitious launch date Project plan prepared and monitored Resources assessed, identified

and assigned Launch time-line created

Weekly global team and IT calls conductedHeld daily calls with Connect’s core team Management’s weekly global roundtable provided forum for time line updates

Greatest challenge: www.connectbyhertz.com

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High Level Time LineJULY AUGUST DECEMBERNOVEMBEROCTOBERSEPTEMBER

Team meeting

Vendor evaluation/ selection

Marketing Analysis

Develop plans and roles

Branding/logo/name 10/13/08

Web design , development and deployment 10/27/08

Develop financial models

Develop marketing plan

Order, receive and install in-car technology

Hire operations team

Develop pricing & insurance models

Develop training/policies and procedures – MCC, sales, members

Testing web, in-car, back office

Secure parking

Order fleet

Place cars

Beta Launch

Prelim Start

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Beta launch

Beta Test Begins Actions following test Retesting Final Evaluation

Launch prepPreliminary

Launch

OBJECTIVE:Use a controlled Test Group (MTG), locked down website and zero branding; testing to begin in October, including: enrollment, reservations, rental, billing and Member Care Center to evaluate quality, usability and identify improvements prior to launch.

•MTG enrollment begins

•Vehicle placed on grid

•MTG reserve and drive

•Receive MTG feedback

•MTG feedback summarized and logged

•Review and prioritize feedback/issues

•Develop action plan and time line

•MTG meeting to discuss action plan

•Revise action plan

•2nd MTG feedback summarized and logged

•Review and prioritize feedback/issues

•Update action plan and time line developed

•MTG Meeting to discuss plan

•Critical issues finalized and implemented

•Close test

•Develop plan for issues not addressed during beta

•Launch Finalized

•Cars on grid

TIME LINE

•PR event in all markets over a two week period -details to be provided by PR team

•Status update on plan; identify additional issues

•Identify risk and develop solutions

•Final MTG feedback summarized and logged

•Issues prioritized

•Update plan

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Beta launch

TESTING LOCATIONS •Park Ridge 10 Vehicles •New York City 30 Vehicles •Paris 50 Vehicles •London 50 Vehicles •Ohio State 8 Vehicles

MTG PARTICIPATES • Controlled MTG per market invited to

join• Park Ridge employees invited to join• Discounted rate for MTG application and registration ($1.00) and usage ($0.50/hour and $10.00/day).

DELIVERABLES 1.Summary of calls for each group 2.List of issues by priority 3.Conference calls with teams 4.Action list and resolutions 5.Status of previous issues

Team prioritizes issues

MTG feedback submitted

Feedback reviewed

Action plan developed

Solutions developed

Issues and improvements circulated

Feedback recorded and loggedMTG Testing

MTG meeting to discuss feedback

Solutions implemented Launch

PROCESS

DETAILS

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Beta launch

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Cost ManagementProject launch spanned six months $9 million budget established & controls instituted

High-level steps included: Acquiring car-sharing technology Assessing the market/locations Building financial modelsPricing and insurance strategiesCreating the website Brand and marketing planAcquiring fleet, securing parkingDesigning billing processes Hiring and training operations team

Final cost $8.7 million

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HR Management

Plan developed seeking diverse core teamTeam leader chosen

Hired a NYC GM and, in London and Paris, Marketing ManagersMarketing/General Managers, staff includes:

Market Development SpecialistCoordinate local marketing Build brand awarenessBuild membership and revenue

Fleet/Logistics ManagerTrack vehicle utilization Choose expansion areas Build vendor relationships

Market Development/Quality Control Rep

Assist fleet and marketing leads Perform quality control checks

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Communications Management

Global Team required frequent communicationWeekly conference calls held with department leadsTeam members received a project charter

A “Team Room” knowledge repository created:Virtual collaborationCentral location for updated informationDocuments posted: project charter, procurement forms, communications timeline, research, risk analysis

Internal & External Project Communication Plans Created

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Procurement ManagementFleet Purchasing:

Required certain brands and modelsTiming an issue

Car sharing softwareManufacturing and installation timingExtensive testing needed

Securing parking spaces Street and garages

Marketing and Advertising Support Material

Creation and delivery under tight deadline

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COMPLEXITIES/OBSTACLES/CHALLENGES

Launching new business from within Website design, implementation, and testing A hip and trendy marketing campaign, with hyper-local marketing, designed and rolled outProcurement deadlines Technology installationBeta test GPS technology Parking for cars and valet trainingOperational complexities and differences

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PROJECT SUCCESSES

Launched in Madrid & Berlin35+ Universities signedLaunched Electric Vehicle in Camden, LondonNissan agreement to introduce the Leaf

13,500+ Members Globally

700+ Vehicles Globally in 2009

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FUTURE STATEFUTURE STATE

Continue market expansion of ConnectLaunch Connect onto an additional 40

universities Launch Connect2Go – “Our Technology, Your

Cars”One way car sharing launchNegotiate on-street parking in cities Work with state officials to launch ConnectIncrease retail and travel industry partnerships

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2010 PROJECTS

Parking Costs• Reduce Parking Costs• Partner with large parking companies• Partner with HOA’s and property owners

Member Care Center

• Reduce Call per Transaction• Improved website functionality • Improved Eileo functionality

DMV Checks• Eliminate annual full check for members

to reduce costs

Depreciation• Modify depreciation rates • Monitor fleet mix

In-Car Technology

• Leverage ICGC for manufacturing and hardware purchases

4/12/2010