Hertz is pumping the brakes on plans to electrify more of its rental car fleet after EV repair costs came in higher than the company anticipated, and after Tesla
price cuts reduced the resale value of the majority of electric cars in its fleet by about one-third.
CEO Stephen Scherr said on the company’s third-quarter earnings update on Thursday, “our in-fleeting of EVs will be slower than our prior expectations.”
The rental car company reported lower than expected margins for the period ending September 2023, and the CEO said EV repairs were one challenge. “Our direct operating expenses remained controlled in the quarter as they grew with transaction volume. On a unit basis, we achieved productivity gains across most categories of auto. The exception remained vehicle damage costs, particularly those on our EVs.”
Read Article