Posted on 01/13/2024 2:03:54 PM PST by Twotone
Hertz Global Holdings announced Thursday that it plans to trim its electric vehicle fleet, citing high repair costs, and reinvest in gas-powered vehicles.
In Hertz’s regulatory filing on Thursday, the company stated that it will sell 20,000 EVs. The announcement comes after the car rental firm committed to making 25% of its fleet electric by the end of 2024. The company has since pulled back on that goal. It also previously agreed to purchase 100,000 Teslas by the end of 2022 and 65,000 Polestar vehicles over the next five years.
Approximately 80% of the car rental firm’s EV fleet are Tesla vehicles, and Hertz plans to sell some of those vehicles. Its used car website lists over 700 EVs for sale, including Tesla Model 3 and Model Y vehicles, BMW’s i3, and Chevrolet’s Bolt, the New York Post reported. The funds from the sales, which should be complete by 2025, will be used to purchase more gas-powered cars.
The company claimed that the collision and damage repair costs associated with EVs are more significant than with gas-powered vehicles. In a recent Securities and Exchange Commission filing, Hertz wrote, “Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter.”
During a recent analyst call, Hertz CEO Stephen Scherr stated, “[C]ollision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle.”
“Remember, in the likes of GM and other [automakers], there’s decades of establishment of a broad national parts supply network,” Scherr continued. “There’s an aftermarket of parts that is there, that is less mature, obviously, in the context of Tesla.”
He noted that Hertz is in “very direct engagement” with Tesla regarding parts procurement.
“The MSRP declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden,” Scherr said.
Hertz anticipates roughly $245 million of incremental depreciation expenses from the EV sales in the fourth quarter of 2023.
The company noted that it will still offer EVs to its customers as it works to increase the fleet’s profitability.
According to Kelley Blue Book, Americans purchased nearly 1.2 million EVs in 2023, making up 7.6% of all new vehicle sales.
Hertz to admit they were wrong to begin with.
Yuk yuk yuk.
When I look for car rentals they show mostly EVs. I ignore them. I am not getting stuck on the George Washington Bridge or the Cross Bronx Expressway needing to find an outlet for this golf cart.
The cost is considerably less but it’s out of the question. I think they must really be trying to unload this worthless machinery they fell for. And that to be this transparent about it they must be desperate
And I don’t think “get used to it this is the way of the future”. I think “when is this going to end”
Looks like they finally gave up
They can use the pre-owned EVs that no one will buy to fill the giant holes they dug to get the lithium and rare earth minerals to build the burned out battery packs.
From dust to dust.....
Pre-Covid I traveled a lot for business and Hertz was the best around. They were a little more expensive but they were preferred buy my company. Their Hertz Gold Choice was great and the free points toward rentals were the most generous.
I never paid anything for a rental car for any of my semiyearly vacations often 7 to 10 days.
Post covid I tried to book a trip to the UK. I had lost all my Hertz Gold points and all they had was EVs.
Now we are with National. A two week rental in the UK rates the same as a single day in the US. 5 more rentals get me one free day. Pop the cork!
If Hertz had any sense, they would fire the employees responsible for this fiasco. I’m guessing that the loss of business, forced refunds to customers and purchase of the EV’s probably cost the company billions of dollars.
Can they spell panacea that they had visions of dancing in their heads?
I suspected that Hertz was preferred by businesses, because, when renting a car a few times in the past year, I found Hertz to be far more expensive than Avis.
Wrong? Anyone can be wrong I think they were stupid or crazy.
Not exactly the cheapest EV's. Tesla means:
Too
Expensive
Still
Liberals
Adore
And the 2nd brand name listed is BMW. It's like they went out of their way to get the most expensive ones, and they wonder why their repair costs are high?
“… citing high repair costs…”
I thought EVs were supposed to have lower maintenance costs. Maybe this includes all the cars that were declared “totaled” after fender-benders.
What I have always wanted—a used EV from Hertz! Funny how these nuts are so stupid, but it’s fun to watch.
How do you return the car fully charged? Sounds like an arbitrary mandatory energy fee.The turn around time for next rental must be terrible.
Not only do electric cars cost a fortune to buy and will incinerate you and your home but if damaged cost you even more in repair then a gas car.
FTA: Hertz CEO Stephen Scherr stated, “[C]ollision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle.”
I have a friend who owns a large auto body and paint shop. He won’t touch an EV, the liability is too great.
What genius at Hertz projected cost savings?
I am guessing group think throughout the auto industry. The feds say jump, and auto execs say how high. A lesser exec isn't likely to say anything.
I bet it’s an eco score for investment funds
Everyone that buys an EV is an idiot.
Battery technology isn’t there.
Infrastructure isn’t there.
And they are not better for the environment,
measured from the mines to the road.
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