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Avis Appoints New CEO: Will This Take the Graph Higher?

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Leading vehicle rental service provider, Avis Budget Group Inc.CAR named its next Chief Executive Officer (CEO) yesterday, along with a host of senior management changes. The new appointees together will take the company's growth strategy to the next level.

The company's board promoted Larry D. De Shon to the position of CEO, who replaced long-time CEO Ronald L. Nelson. De Shon, who currently serves as president, International, will assume the role of president and chief operating officer from Oct 1, 2015 and later take over as the company's CEO effective Jan 1, 2016.

At the same time, Nelson, who has been the company's CEO and Chairman of the board since 2006, will continue to serve as the company's executive chairman to ensure smooth transition.

De Shon has been with Avis since 2006 and served in various roles including supervising Avis Budget's Europe, Middle East and Africa ("EMEA") and U.S. operations. His résumé also boasts of formidable experience with United Airlines, which has now merged with Continental Airlines and is called United Continental Holdings UAL . During his tenure at United Airlines, he was responsible for global marketing, on-board service and airport operations.

Other appointments included the elevation of David B. Wyshner to the position of the company's president, effective Jan 1, 2016, and that of Mark J. Servodidio as president, International, succeeding De Shon. However, Joseph Ferraro will retain his position as president, Americas.

We believe these leadership changes are in correlation with the company's long-term strategies and will help deliver strong returns to shareholders as these leaders have a background of dealing with challenges in the various roles held by them and emerging as winners.

Avis operates as a leading provider of vehicle rental, vehicle leasing and limousine/chauffeur drive services. The company has been gaining value from its expansion strategies, which are progressing in full swing via alliances, acquisitions and joint ventures. Also, this Zacks Rank #3 (Hold) company remains focused on fortifying its fleet with the addition of latest car models from leading manufactures in order to attract customers. We believe these strategies along with better customer support systems, position the company for top-line growth.

Zacks Rank

Some better-ranked stocks in the business services industry include Core-Mark Holding Company Inc. CORE and Liberty Tax Inc. TAX , each with a Zacks Rank #2 (Buy).

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AVIS BUDGET GRP (CAR): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

CORE-MARK HLDG (CORE): Free Stock Analysis Report

LIBERTY TAX INC (TAX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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