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Hertz Axes 20,000 EVs For Gas Cars Over Low Demand, Higher Costs

by Spencer Brown
January 12, 2024, 12:07 PM
in News and Opinion
Reading Time: 2 mins read
A A
3

hertz rentalIn yet another blow to the Biden administration’s attempts to force a “green” (read: extremely not green) energy “transition” as part of the president’s crusade to “end” fossil fuels, the Hertz rental car company has announced that it’s abandoning its electric vehicles and pivoting back to gasoline-powered cars.

On Thursday, Hertz said it was selling off 20,000 of its electric vehicles —roughly one-third of its EV fleet — and will replace them with gas-powered vehicles in its for-rent fleet. [emphasis, links added]

As Axios reported, the company cited the high cost of repairing its EVs as part of its decision to pivot back to good ol’ gasoline vehicles.

⚠️ JUST IN :

*HERTZ TO SELL ABOUT 20,000 ELECTRIC VEHICLES FROM U.S. FLEET DUE TO LOW DEMAND AND HIGHER COSTS

*HERTZ TO USE A PORTION OF THE MONEY RAISED TO BUY GAS POWERED CARS$HTZ pic.twitter.com/mjbCm1OVg8

— Investing.com (@Investingcom) January 11, 2024

As Axios’ report reminded, “[t]he move marks an abrupt reversal by Hertz, which in 2022 announced plans to buy 165,000 EVs from Tesla and Volvo unit Polestar” and said the move means “a $245 million loss” for Hertz.

In 2023, Hertz boasted that it was being recognized by the Biden administration for its “efforts to expand access to electric vehicles across the country,” claiming demand for EV rentals was “growing.”

This morning, @Hertz was recognized by The White House for our efforts to expand access to electric vehicles across the country. Demand for EV rentals is growing and we’re here to help our customers electrify their travels. #HertzLetsGo #HertzEV https://t.co/rLJa0lmHG8

— Hertz (@Hertz) March 30, 2023

In a report on the decision, Reuters noted that Hertz’s pivot away from plug-ins is “another sign that EV demand has cooled,” undercutting the company’s plan to have a quarter of its fleet made up of electric vehicles.

Read rest at Townhall

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Comments 3

  1. Richard Greene says:
    2 years ago

    BS article
    These Hertz EVs had been used for several years by for ride hailing companies like Uberr. They are all high mileage older cars than the usual Hertz ICE cars typically replaced after a year or two. These mainly Tesla 3 EVs had 50000 to 100000 miles and were 2 to 3 years old.
    Hertz decided they could keep the cars longer by distributing them to various Hertz retail locations because the resale value was low. The other Hertz locations already had enough EVs to meet demand and did not need more. So Hertz did what they always do: They decided to sell the EVs as used cars. Older used cars with more mileage than the usual Hertz ICE used ca on sale

    EVs are not convenient for renting for more than a day or a weekend. You can’t force them on rental customers. But there is also a $35 recharging fee when you turn in a Hertz EV and a penalty for a charge under 20% or 10%,

    Conservatives jumped on this story like a junkyard dog with a bone
    No investigations
    Exaggerations

    No context that US EV new vehicle registrations were up over +50% in 2023 versus 2022, which was even larger than the 2022 gain. EV sales are booming. But why let facts get in the way of a good anti-EV propaganda fairy tale?

    Reply
  2. Sonnyhill says:
    2 years ago

    Back in the 60’s, Hertz ordered a bunch of black and gold Shelby Mustangs. Very popular at the local drag strips in California. Tesla uses the acceleration of its cars to promote sales. So, what is wrong here? If anyone wanted to try out an EV with an eye towards buying one, Hertz offered the low-commitment opportunity. Now, used EV’s are on the market competing against manufacturers offerings. Looking bad for business.

    Reply
  3. Steve Bunten says:
    2 years ago

    Who would have expected a company would desert such a wonderful product as EVs? I guess that the people at Hertz just don’t understand their value! Oh wait, they are more expensive and if a renter is unable to find a useable charging station and the battery goes dead it’s hundreds of dollars to get towed while someone with a gas-powered vehicle will find gas stations all over and will take minutes to fill the tank. Guess car renters are smarter than the Biden administration.

    Reply

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