ATLANTA, GA – Hertz, the rental car company, originally making headlines in 2022 for planning to purchase 175,000 electric vehicles (EVs) from General Motors to diversify its fleet, has now announced its intention to sell approximately one-third of its global EV fleet in 2024.
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The decision was revealed in a government filing, citing higher expenses related to collision and damage for EVs, as well as lower-than-anticipated demand leading to diminished resale values. Hertz began the sale of around 20,000 EVs from its U.S. fleet last month and plans to continue throughout the year. The move is seen as a setback for the electric vehicle adoption, falling short of automakers’ expectations.
General Motors (GM) has not yet commented on how Hertz’s decision might impact its order. Hertz’s reduction in its EV fleet is viewed as a challenge for the broader electric vehicle market. GM had previously adjusted its EV production targets in response to market demand. Hertz, in its filing, mentioned ongoing initiatives to enhance the profitability of its remaining EV fleet, including expanding charging infrastructure, strengthening relationships with EV manufacturers, and implementing policies and educational tools to enhance the EV experience for customers.
Despite potential negative effects on public perception, industry analysts suggest that the sale of 20,000 used EVs might not significantly impact the overall market, and the shift is seen more as a Tesla-specific issue within Hertz’s fleet, given that about 80% of its EVs are Teslas. [Source: Bloomberg News]
