SIXT looks to shake up the car rental sector through big deal with Stellantis

Car rental company SIXT SE (OTC:SIXGF) struck a deal with and Stellantis (STLA) on Tuesday for the purchase of up to 250K vehicles. The German company said the deal lays the foundation for further global expansion.

SIXT (OTC:SIXGF) can buy up to 250K vehicles for its rental fleet in its corporate countries across Europe and North America over the next three years. First significant delivery volumes will take place as early as the first quarter of 2024 and will continue throughout the year. SIXT rental customers will be able to choose from Stellantis brands including Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Opel, Peugeot, Ram, Vauxhall and Maserati. The deliveries to SIXT will include a variety of classes from city cars to SUVs to vans and trucks (including 7- and 9-seaters) as well as a full range of propulsion types (including battery electric vehicles) featuring the latest software and infotainment tech features.

Additionally, Stellantis (STLA) and SIXT (OTC:SIXGF) plan to explore potential cooperation opportunities in various regions around the world including Mobilisights, Stellantis’ data as a service (DaaS) business, to provide and develop data packages for developing and licensing innovative business-to-business products, applications, and services which will be made available to SIXT.

Konstantin Sixt, Co-CEO of SIXT: “This agreement with a progressive, full-range partner underscores our promise to provide our customers with the best choice for all their mobility needs. It enables us to accelerate our growth strategy ‘EXPECT BETTER’, after already achieving global revenue growth of almost 20 percent in the first nine months of 2023. This ambition applies to European countries, but of course also to the U.S., the largest rental market in the world and the most important growth market for our company.”

The development could be significant for Avis Budget Group (CAR) and Hertz Global Holding (HTZ) if SIXT (OTC:SIXGF) is able to rapidly expand to compete in new markets.