Hertz to scale back on US electric fleet

January 17, 2024
Hertz to scale back on US electric fleet
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Hertz is to cut back on its fleet of electric vehicles in America, in favour of petrol models, according to a filing it has made to the Securities and Exchange Commission in the US. 


The move has attracted the attention of the financial world, because the company estimates that it will lose some $245 million through offloading 20,000 electric cars, from it 60,000 EV fleet. 

However, the automotive world is also showing great interest in the move and the reasoning behind it. One of the main factors appears to be that collision and damage repairs on an electric vehicle can be as much as double those of combustion engine cars. Another reason cited for the move, was the sparse service network of repair centres suitable for the fleet of mainly Tesla EVs, as well as delays in parts availability. This has meant increased downtime on these cars.  

Added to these factors, the major losses predicted take into account lower residual values on EVs, through a combination of slowing demand and new vehicle discounts. 

Other reports indicate that there is some driver resistance to using EVs for longer journey vehicle rentals, due to concern over range and charging points. 

EV sales in the US, like many other countries, are continuing to grow, but the pace of this growth is slowing. Hertz has said it remains committed to its EV strategy and will be introducing initiatives such as expanding its own charging infrastructure and working more closely with vehicle manufacturers on faster access to replacement parts. 
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