GM Seals Pact to Sell National Car Rental System : Autos: Industry veteran is leading NCR Acquisition Corp. in deal expected to fetch more than $1 billion.

DETROIT —  General Motors Corp. said Tuesday that it sealed a definitive pact to sell National Car Rental System Inc. to an investment group led by a rental car industry veteran.

Financial terms were not disclosed, but the unit was long on the auction block and was expected to fetch more than $1 billion.

William Lobeck of Tulsa, Okla., is leading NCR Acquisition Corp. in the purchase.

Lobeck has been involved in the industry for more than 20 years. He bought Thrifty Car Rental in 1981 with a group of investors and later sold it to Chrysler Corp. He also served as president of Chrysler’s car rental companies.

In addition to Lobeck, NCR Acquisition is owned by Alvin Swanner of New Orleans and Archer McWhorter of Houston.

The agreement includes provisions for Minneapolis-based National Car Rental to continue to employ its 6,400 workers and to maintain its long-term fleet agreement with GM to purchase vehicles.

Some licensees of National Car Rental may also join the investor group, GM said.

GM acquired a 45% stake in National in September, 1988, and later acquired full ownership. In 1992, however, GM took a $744-million charge against earnings due to losses and write-downs in the unit.

It then hired Jay Alix & Associates, a Southfield, Mich., firm that specializes in fixing troubled companies, in early 1993, and the company broke even that year. GM said National Car Rental was profitable in 1994.

In September, GM signed a preliminary agreement to sell National to Vestar Equity Partners, but that deal fell apart early this year.

GM said the sale is consistent with its strategy to divest non-core assets and focus on its automotive businesses.

GM’s board approved the sale Monday.

National Car Rental has more than 5,000 offices in 132 countries, with system members Tilden Interrent in Canada; Europcar Interrent in Europe, Africa and the Middle East, and Nippon Interrent in the Pacific Rim.

It reported U.S. revenue of $960 million in 1994. GM stock fell $1.125 to close at $43.50 on the New York Stock Exchange. The market closed before the sale was announced.