Hertz to Reduce EV Fleet by an Additional 10,000 Cars

Rental car giant Hertz had bold plans to electrify its fleet, ordering no fewer than 100,000 cars to Tesla back in 2021. But three years later, the harsh reality of the EV market in the U.S. is hitting the company big time.

In January, we told you that Hertz would sell off one-third of its EVs to resize its American fleet in line with slowing demand growth for emission-free transport.

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After losing $195 million USD (approx. $267 million CAD) in estimated vehicle depreciation during the first quarter of 2024 compared to the same period a year ago, Hertz now wants to get rid of 30,000 EVs—not only Teslas but also Polestar 2 sedans and other models—or 10,000 more than initially planned.

EV depreciation combined with high maintenance costs means Hertz is unable to make money off the sale of used rental EVs. The new plan is to go back to conventionally powered cars for most of the fleet.  

In March, CEO Stephen Scherr resigned in a move that many analysts in the U.S. directly linked to Hertz’s failed EV gamble.

"Fleet and direct operating costs weighed on this quarter's performance," his successor Gil West said. "We're tackling both issues—getting to the right supply of vehicles at an acceptable capital cost while at the same time driving productivity up and operating costs down."