Because costs are too high: Car rental company Hertz abandons order for 100,000 Teslas

class=”sc-29f61514-0 icZBHN”>

Two years after Hertz announced it would buy 100,000 Teslas, the car rental company is more sober about expanding its electric fleet.

The proportion of electric cars will grow more slowly than previously expected, company boss Stephen Scherr, 57, said when presenting quarterly figures on Thursday. One problem is that Tesla’s repeated price cuts have also reduced the resale value of previously purchased fleet vehicles. On the other hand, damage repair of electric cars is approximately twice as expensive as internal combustion engines.

Cheap electric vehicles will be preferred

Hertz had a total of 562,000 vehicles available for rent worldwide in the latest quarter; approximately 442,000 of these were in the United States. Electric cars make up about 11 percent of Hertz’s fleet, while Tesla’s make up 80 percent, Scherr said. The group had previously aimed for a quarter of the fleet to be electric by the end of 2024, but this has not been finalized yet.

People now want to buy cheaper electric vehicles from other manufacturers such as General Motors. Hertz also expects lower repair costs for them. Tesla will also benefit from lower purchase prices now.

Hertz is still fundamentally committed to its role as a pioneer in fleet electrification, among other things, because that’s the only way to learn the vehicle business, Scherr said. Hertz caused a stir in October 2021 by announcing that it wanted to order 100,000 Teslas by the end of 2022. (SDA/sfa)

Source :Blick