Hertz revealed on Thursday that it has initiated the sale of one-third of its electric vehicles (EVs) with the aim of replacing them in its fleet with gas-powered cars.
The rental car company disclosed that the sale commenced last month and will continue until the conclusion of 2024.
Hertz CEO Stephen Scherr, in an interview with CNBC, stated, “We took a bold move and are taking a strategic adjustment to our fleet to take 20,000 electric vehicles out of the fleet.” He clarified that the decision is driven by the need to align supply with demand and address cost concerns related to EVs, particularly in terms of damages and associated costs.
Scherr underscored that the choice is “not about the broader issue of EVs for the company” but is centered on financial performance and operational integrity. He expressed disappointment that, despite interest in EVs, the demand hasn’t reached a level justifying the maintenance of a fleet of this size currently.
While acknowledging their belief in EVs becoming the “best rental car” in the future, Scherr suggested that the company might have been too ambitious in anticipating the speed of EV adoption.
In 2021, Hertz had announced plans to acquire 100,000 Teslas and had recently entered agreements with General Motors and Polestar for an additional 175,000 and 65,000 EVs, respectively. However, Scherr acknowledged that the completion of these deals would take longer than initially anticipated in light of the recent strategic shift.
