Change of strategy in the electric car sector: Hertz is significantly reducing its electric car fleet

The renowned car rental company Hertz, known for its ambitious goals in the field of electric vehicles, appears to have overestimated its expectations of market demand. As a consequence, the company is now initiating a significant course correction.

A lot has happened in the electric car segment in recent years. The range of vehicles has increased and charging times have shortened. At the same time, the number of new registrations of electric vehicles is continuously growing. However, despite these positive developments, enthusiasm for electric cars appears to have been overestimated in some areas, such as car rental companies. The car rental company Sixt has already announced that it will not purchase any more Teslas because the demand for electric vehicles still lags behind that of conventional combustion engines. In addition, a pricing policy led to falling residual values. Hertz, a direct competitor, has now also decided to reduce a significant part of its electric car fleet. McDonald's is also pursuing a new strategy with CosMc'sHow NEXTG.tv reported.

Hertz is selling 20,000 electric cars

Hertz plans to sell around a third of its electric car inventory and refocus on vehicles with combustion engines. This move follows the realization that demand for electric vehicles is lower than expected and maintenance costs are higher than expected. Hertz is also not satisfied with the resale value of the vehicles.

In October 2021, Hertz announced the purchase of 100,000 Tesla vehicles, supplemented by subsequent orders of 175,000 vehicles from General Motors and 65,000 from Polestar. An initial balance sheet in 2022 was still cautiously positive, with a higher residual value and lower maintenance costs compared to combustion engines. But after introducing 20,000 electric cars into the fleet, conditions appear to have changed.

Sales proceeds partly flow into new combustion engines

According to reports from the German press agency Hertz plans to sell 20,000 electric cars from various manufacturers in the USA. Part of the proceeds will be invested in the purchase of new combustion vehicles. This would result in an additional $245 million in write-downs, with Hertz indicating that operating profit should increase as a result of the change in strategy. A person recently won the lottery after changing his strategy for the first time.

Used Teslas from the Hertz fleet at attractive prices

Some of the used Teslas in the Hertz fleet are available at comparatively affordable prices, such as Car scoops and Electr to report. A Tesla Model 3, for example, is available from 17,700 US dollars (around 16,200 euros). However, the real value of such a vehicle depends heavily on the technical condition, especially the condition of the battery. Many of these vehicles have high mileage, some over 60,000 miles (around 96,500 kilometers).