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Hertz is selling 20,000 used EVs due to high repair costs

2024-01-11 18:22 by
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Rental firm Hertz Global Holdings is selling about 20,000 electric vehicles, including Teslas, from its U.S. fleet about two years after a deal with the automaker to offer its vehicles for rent, in another sign that EV demand has cooled. The offloading of the vehicles will cut the company's global EV fleet by one-third, Hertz said in a filing with the Securities and Exchange Commission.

"The company expects this action to better balance supply against expected demand of EVs," Hertz said in an SEC filing. "This will position the company to eliminate a disproportionate number of lower margin rentals and reduce damage expense associated with EVs."

Collision and damage costs for EVs remained high in the fourth quarter, Hertz said in a regulatory filing. That’s because EVs require special tools and parts and specialist knowledge to repair after a crash, more so than traditional gas-powered vehicles.

After Hertz went bankrupt during the early days of the pandemic, its big EV ambitions began in 2021, when the company revealed it wanted more than 20 percent of its rental fleet to be electric by 2022. To that end, it placed an order for 100,000 Tesla Model 3 sedans, then followed up with an order for 65,000 Polestar 2s.

Hertz said it expects the sale of the EVs to "take place in an orderly fashion over the course of 2024." It started offloading them late last year.

Read more -here-


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