Hertz plans to reduce its electric fleet by about 20,000 vehicles, which constitutes a third of its total EV fleet.
The company will use the proceeds from the sales to buy more gasoline-powered vehicles.
The comes after Hertz executives in the US acknowledged that EVs, although cheaper to maintain, incur higher damage-repair costs and suffer from greater depreciation.
Stephen Scherr, Hertz’s CEO, noted that repair costs for EVs can be about twice as high as those for comparable combustion engine vehicles. Moreover, the recent decline in new EV prices, primarily driven by Tesla’s price cuts, has lowered the resale value of Hertz’s used EVs. The company expects to face a loss of approximately $245 million due to EV depreciation, averaging around $12,250 per vehicle.
Tesla vehicles, which comprise about 80% of the company’s EV fleet, have been significantly impacted by these issues. The company’s aggressive pricing strategy has influenced other automakers to reduce their EV prices, leading to a decrease in the value of used EVs in the market. This depreciation is a critical concern for rental companies like Hertz that frequently sell vehicles in the used car market.
The company also pointed out challenges with Tesla in terms of the availability of replacement parts and trained repair technicians, making repairs more costly and time-consuming. Scherr mentioned said there was a lack of ‘a mature parts supply network and aftermarket’ for Tesla, compared to established automakers like General Motors.
Scherr told media that EVs, particularly Teslas, are more prone to accidents, further increasing repair costs and risks. Hertz is working with Tesla to address these issues, including lowering the incidence of damage and improving parts procurement and labour processes.
Hertz sells its used vehicles through auctions and its Car Sales website. The shift in strategy reflects the company’s response to the evolving market conditions and financial implications of maintaining a large fleet of electric vehicles.
Was the tax imposed by Labour on Farmers utes to pay for EV subsidies?
Another Labour debacle failure?
Just following orders!
Who in the hell wants to rent an EV anyway? That’s what I want to do to in a new town I’m visiting and don’t know – search for and sit at charging stations 😒👍
All the promised “popularity” was nothing but media hype and establishment lies, and now that the money is beginning to dry up, these companies are sitting with a fleet of useless products nobody wants.
Great job guys 😒👏👏
Egg on face for the virtue signalling eco-idiots.
Hilarious.
$1000/year to drive your EV: Road user charges for electric vehicles from April 1, Transport Minister Simeon Brown confirms
https://www.nzherald.co.nz/business/1000year-to-drive-your-ev-road-user-charges-for-electric-vehicles-from-april-1-transport-minister-simeon-brown-confirms/FYK45LJ3ZJD6LOJONCPO47AOHI/