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Hertz to Sell Off a Third of Its Electric Vehicle Fleet

Rental Car Giant Cites Weak Demand and High Repair Costs as Reasons for Shift Back to Gasoline-Powered Vehicles

EVs account for far less of Avis’s fleet than Hertz’s. Here, an Avis Budget Group charging station at Houston Airport.
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Guests attend as Hertz kicks off one of the country’s largest electric vehicle test drives at the company’s Los Angeles International Airport location on July 19, 2023 in Los Angeles, California. Drivers had the chance to test drive an EV and see the newest EV models showcased by Tesla, Chevrolet, Polestar, and Kia. Additional in-person test drives are being planned at Hertz locations across the U.S. later this year.
Tesla parked in front of Hertz office.

Overview

  • Hertz Global Holdings Inc. plans to sell off a third of its electric vehicle (EV) fleet, approximately 20,000 vehicles, due to weak demand and high repair costs.
  • The company will use the proceeds from the sales to purchase more gasoline-powered vehicles to meet customer demand.
  • The decision comes after Hertz reported higher depreciation and damage than expected to its EVs, amounting to $245 million in costs.
  • Hertz had previously set a target for 25% of its fleet to be electric by the end of 2024, a goal that will now take longer to achieve.
  • The move is seen as a setback for the EV industry, with some analysts suggesting it could signal a slowdown in EV adoption.