In the period following any potential takeover of Dollar Thrifty, the Hertz group could achieve cost savings of USD$180 according to its CEO.

On Wednesday, mark Frissora claimed during a conference call that the $180 million figure was at the lower end of projections of costs savings’ should the takeover go ahead.

Frissora said that 70 per cent of the total would be made back in the first year after the purchase, adding that Hertz was not in the least bit shy of making such a bold statement and that the returns on the transaction would be rapid. The savings would come through the consolidation of the joint company fleets, financing options and information technology, while a streamlining of the management would also reduce overheads. Fleet management would account for some $70 million while non-fleet procurement was estimated at $25 million, but Frissora added that these were both conservative estimates.

Hertz made the initial Dollar Thrifty offer of $41 per share back in April but has been forced into a protracted bidding war with rival Avis, who has recently made an offer of $46.50 per share.

The possibility of a Hertz takeover has led to some concern at the Tulsa-based headquarters of Dollar Thrifty, where around 700 staff are currently employed. The fear is that with Hertz already employing some 1,700 staff at nearby Oklahoma City, there may be widespread job losses under the takeover, with plenty of speculation that the synergies forecasted by Frissora for achieving cost savings would come at the expense of Dollar Thrifty workers.