Why Rental Car Companies Are Ditching Electric Vehicles for Gas Cars
Rental-car company is the latest to be hit by weak demand for electric cars. Hertz Global Holdings Inc. said Thursday it is selling about 20,000 electric vehicles from its fleet, or about one-third of the total, in the latest sign that the EV revolution is stalling amid weak demand from consumers.
The move is aimed at better balancing supply and expected demand for EVs, allowing the car-rental company to scrap a disproportionate number of lower-margin rentals and reduce damage expenses associated with EVs.
Collision and damage costs for EVs remained high in the fourth quarter, Hertz said in a regulatory filing. That’s because EVs require special tools and parts and specialist knowledge to repair after a crash, more so than traditional gas-powered vehicles.
The charge is on top of the depreciation costs the company expects to record in the quarter in the ordinary course of managing its fleet.
Hertz will continue to offer EVs but will implement measures to boost profitability, including by expanding infrastructure such as charging stations and expanding relationships with EV makers, particularly as it relates to more affordable access to parts and labor, the company said.
Hertz will reinvest in additional internal-combustion-engine vehicles and expects to improve profits or earnings before interest, taxes, depreciation and amortization, across 2024, as vehicles are rotated.
-
5:23
JUST A HOMELESS MAN
1 hour agoThe colossal problem with universal basic income.
2 -
LIVE
Glenn Greenwald
2 hours agoAIPAC's Singular Ability to Remove and Influence Members of Congress; Senator Rand Paul On More COVID Cover-Ups; PLUS: Media Denies Biden's Decline | SYSTEM UPDATE #286
3,546 watching -
Donald Trump Jr.
6 hours agoRight Wing Revolution: How to Win on the Ground, at the Ballot Box, and Save the West, Charlie Kirk & Sean Parnell | TRIGGERED Ep.147
31.4K112 -
1:42:49
The Quartering
5 hours agoDisney BUSTED On Secret Recording & Star Wars The Acolyte Backlash GOES NUCLEAR!
16.9K10 -
6:48
One Bite Pizza Reviews
1 day agoBarstool Pizza Review - Christo's Restaurant & Bar (Wallingford, CT)
4.52K24 -
28:25
Degenerate Plays
1 hour agoAll Bricked Up - Call Of Duty Modern Warfare Remastered : Part 9
44016 -
LIVE
WeAreChange
2 hours agoTURBO CANCERS Soaring! VAX Or COVID Connection Established?
2,006 watching -
51:39
Kimberly Guilfoyle
4 hours agoNO BORDERS BIDEN, Where We Go from Here, Live with Monica Crowley & Jaime Florez | Ep. 135
22.1K38 -
43:19
Game On!
2 hours agoJJ Redick land Laker's job, Patriots pay their young RB, and Dave Portnoy fed up with his employees
9.98K2 -
16:37
Scammer Payback
2 days agoHere's the Scammer's Location 👉 (28°34'05.1"N 77°24'00.9"E)
64.6K38