Hertz Trims EV Fleet With Massive Sell-Off
Companies often tout their green initiatives as a way to drum up new business, but the expensive reality of investing in EVs and other technologies isn’t always clear up front. Hertz found that out the hard way, as it aggressively invested in new EVs for its rental fleet a couple of years ago, only to begin selling them off in 2024.
The company announced that it would buy tens of thousands of electric vehicles from Polestar, BMW, Chevrolet, Tesla, and others and had aimed to purchase 100,000 Teslas by the end of 2022. While that splashy announcement likely netted the company new customers, it now has hundreds of EVs on sale as it moves to scale back its fleet. At their height, EVs made up 11 percent of Hertz’s rental vehicle catalog.
The company blamed EVs’ high repair costs and expensive collision repairs as part of its decision. Consumer Reports found that EVs are typically less reliable than comparable gas models, which could cause repair costs to pile up over time. Hertz will see about a $245 million expense from the sale in the fourth quarter of 2023.
Demand for EVs continues to grow, although far slower than many had hoped. Sales climbed just over one percent in the last quarter of 2023, but updates to the EV tax credit rules may spur more sales going forward, as buyers can now use the tax credit as a discount at the time of the sale instead of waiting for a year-end refund.
[Image: Feng Cheng via Shutterstock]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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Looks like poor planning on the part of Hertz which the other agencies can learn from.
I see no mention of an Hertz EV app demonstrating how to charge; charger locations participating in a preferred Hertz program: and complementary coupon of $5 or $10 bucks off your first charge. Also, additional app features on how to turn on and off the EV; driving dynamics; dash board operating features; location of charging port and type of adapters and chargers; etc.
Also, assurance of a fast charger near or in the airport is critical. Most airports are surrounded by gas stations topping off ICE rentals before return to the agency. Again, lack of forethought.
I guess the mindset of Hertz was just have it in stock and people will come which is one of the cardinal sins of marketing!! This will go down as one of those case studies in college of how not to market EVs. 🚗🚗🚗
Note the conspicuous absence of the usual EV proponents on this thread...
What would be the real reason for the sell off? Well, most of those renters never had an electric car and they are staring at a car loaded with user interfaces that have a learning curve. Two, most are rented away from home so renter has no idea where the charging stations are unless they have figured out 1 above. Three, they really don't know what the real world range is going to be. Four, the charging infrastructure is just not ready for prime time. The last thing somebody renting a car needs is to worry about all that. The tool has to match the task at hand. If I had to pick a use where an EV would be a poor choice, a rental unit would be at the top of the list. When we have charging that is more akin to a gas station and a significant percentage of the renting population has experience with EVs, then an only then electric cars would be a good rental choice. This is not an EV fail, it's a classic Corporate America fail.
i can't lie, i can't tell you that I'm something I'm not, no matter how I try
i'll never be able to give you something, something that I just haven't got
(overheard at the hertz airport rental counter)