Hertz Global Holdings announced Thursday that it plans to reduce its fleet of electric vehicles due to high repair costs and reinvest in gasoline-powered vehicles.
In Hertz's Thursday regulatory filing, the company said it would sell 20,000 EVs. The announcement comes after the rental car company pledged to make 25% of its fleet electric by the end of 2024. After being pulled back About that goal. The company previously agreed to buy 100,000 Tesla cars by the end of 2022 and 65,000 Polestar cars over the next five years.
About 80% of rental car companies' EV vehicles are Teslas, and Hertz plans to sell some of those vehicles. The company's used car website has more than 700 of his EVs for sale, including the Tesla Model 3 and Model Y, BMW i3, and Chevrolet Bolt. new york post report. The proceeds from the sale, which is expected to be completed by 2025, will be used to buy more gasoline-powered vehicles.
The company claimed that collision and damage repair costs associated with EVs are more expensive than gasoline-powered vehicles. In a recent Securities and Exchange Commission filing, it states: Hearts wrote“Costs related to crashes and injuries, primarily related to EVs, continued to be high during the quarter.”
In a recent call with analysts, Hertz CEO Stephen Scherr said: said,”[C]Collision and damage repairs for EVs often cost about twice as much as comparable internal combustion engine vehicles. ”
“Remember, in GM et al. [automakers], an extensive national parts supply network has been established for decades,” continued Scheer. “In the Tesla context, there is clearly an immature parts aftermarket.”
He said Hertz has “very direct engagement” with Tesla regarding parts sourcing.
“Due to the decline in manufacturer suggested retail prices for EVs into 2023, driven primarily by Tesla, the fair market value of our EVs has decreased compared to last year, resulting in higher losses and burdens due to recalls,” Scheer said. said. He said.
Hertz expects approximately $245 million in increased depreciation and amortization from EV sales in the fourth quarter of 2023.
The company said it will continue to offer EVs to customers while working to improve the profitability of its fleet.
according to kelly blue bookAmericans will purchase nearly 1.2 million EVs in 2023, accounting for 7.6% of all new car sales.
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