The rental giant says the decision is in part because EVs are expensive to repair
11 January 2024 - 19:13
byNathan Gomes and Akash Sriram
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The company had previously set a target for 25% of its fleet to be electric by the end of 2024.
Picture: REUTERS
Rental firm Hertz Global Holdingssaid on Thursday it would sell about 20,000 electric vehicles (EVs) from its US fleet due to higher expenses related to collision and damage, and will opt for petrol-powered vehicles.
Shares of the company, which operates vehicles from Tesla and Swedish EV maker Polestar, among other companies, fell about 3% at the market open.
Hertz had said it would order 100,000 Teslasby the end of 2022 and followed that with a decision to buy up to 65,000 unitsover five years from Polestar.
“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter,” Hertz said in a regulatory filing on Thursday.
The company had previously set a target for 25% of its fleet to be electric by the end of 2024.
Hertz expects about $245m of incremental depreciation expenses from the proposed sale in the fourth quarter of 2023 and warned of a hit to adjusted corporate core profit for the period.
The company said it would continue to focus on improving profitability for the remainder of its EV fleet.
Hertz’ used car website lists more than 700 EVs on sale including BMW’s i3 and Chevrolet’s Bolt, as well as Tesla’s Model 3 and Model Y SUVs.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hertz to swap 20,000 EVs for petrol cars
The rental giant says the decision is in part because EVs are expensive to repair
Rental firm Hertz Global Holdings said on Thursday it would sell about 20,000 electric vehicles (EVs) from its US fleet due to higher expenses related to collision and damage, and will opt for petrol-powered vehicles.
Shares of the company, which operates vehicles from Tesla and Swedish EV maker Polestar, among other companies, fell about 3% at the market open.
Hertz had said it would order 100,000 Teslas by the end of 2022 and followed that with a decision to buy up to 65,000 units over five years from Polestar.
“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter,” Hertz said in a regulatory filing on Thursday.
The company had previously set a target for 25% of its fleet to be electric by the end of 2024.
Hertz expects about $245m of incremental depreciation expenses from the proposed sale in the fourth quarter of 2023 and warned of a hit to adjusted corporate core profit for the period.
The company said it would continue to focus on improving profitability for the remainder of its EV fleet.
Hertz’ used car website lists more than 700 EVs on sale including BMW’s i3 and Chevrolet’s Bolt, as well as Tesla’s Model 3 and Model Y SUVs.
Reuters
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