Hertz sells a third of its US EVs to refocus on ICE vehicles
Published on: Jan 12, 2024
The rental company blamed high repair costs and low customer demand for the decision, coming two years after striking a deal with Tesla to offer its vehicles.
Hertz Global Holdings has announced the sale of approximately 20,000 electric vehicles (EV) to shift back to internal combustion engine (ICE) vehicles.
The rental company has decided to refocus its strategy as EV represent higher repair costs for any potential accidents. In addition, Hertz also cited weak demand from customers as another reason for restructuring its fleet.
The divestment also includes a large number of Tesla vehicles originally acquired in 2021. Two years ago, the company announced a deal with the e-mobility player to offer a large number of its vehicles through its rental program alongside transforming 25% of its fleet to electric by the end of 2024.
This represents a hard blow on e-mobility’s development in the US. The news was announced the very same week as the Biden Administration officialized the second wave of the $7.5 billion investment for EV charging across the country.
