Hertz’s EV Fleet vehicles Management: Challenges, Decisions, and Future Outlook


In recent developments, Hertz has made headlines for its decision to sell off a substantial portion of its electric vehicle (EV) fleet,ev fleet charging amounting to 20,000 EVs. This move has raised eyebrows and questions about the company’s strategy and the underlying reasons behind such a significant divestiture. In this article, we delve into the factors influencing Hertz’s decision, the challenges faced in managing their EV fleet, and the implications for the future of their electric vehicle endeavors.

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Repairs Strain the Bottom Line

One pivotal factor driving Hertz’s divestiture of EVs is the unexpectedly high repair costs associated with rideshare EVs. It’s crucial to note that these costs are related to collision repairs rather than routine maintenance, with EVs incurring approximately double the repair costs compared to traditional internal combustion engine (ICE) vehicles. Johann Rawlinson, Hertz’s VP of Investor Relations, highlighted this challenge, emphasizing the financial strain these repair costs imposed on the company’s third-quarter earnings.

Interestingly, the repair cost disparity appears to be more pronounced with Tesla models, which constitute a substantial 80% of Hertz’s EV fleet. Hertz’s CEO, Stephen Scherr, attributed a significant portion of these costs to Teslas, pointing out the favorable conditions for General Motors’ EVs due to a larger parts and repair network, along with lower associated costs.

EVs Losing Value in a Changing Market

Another critical aspect to consider is the plummeting value of EVs in the market, triggered by recent aggressive price cuts by Tesla. Hertz’s initial investment in EVs predates these price reductions, resulting in a situation where the company is selling its EVs at a lower market value than the purchase price. Rawlinson highlighted the impact of Tesla’s price cuts, stating that the fair market value of Hertz’s EVs has diminished, leading to larger losses and increased financial burden.

Strategic Reallocation, Not Permanent Retreat

Contrary to misconceptions, Hertz’s decision to sell off 20,000 EVs does not signify a permanent withdrawal from the EV business. Rather, it reflects a strategic reallocation of assets aimed at mitigating unforeseen costs and challenges. It’s essential to recognize that EVs constitute only 11% of Hertz’s total fleet, and the 20,000 units represent a mere 4.4% of the overall fleet. This measured divestiture suggests a pragmatic effort by Hertz to optimize its asset distribution.

Future EV Strategy and Collaborations

While Hertz is adjusting its current EV portfolio, ev fleet management the company has not abandoned its commitments to purchase new EVs from General Motors and Polestar. In an interview with Yahoo! Finance, Scherr expressed the company’s ongoing interest in GM’s upcoming, more affordable EVs. This indicates a commitment to the overall EV strategy, although the timeline for achieving these goals may be extended.


In conclusion, Hertz’s decision to sell a portion of its EV fleet is a nuanced response to a combination of repair cost challenges and evolving market dynamics. The strategic reallocation aligns with Hertz’s commitment to the electric vehicle landscape, ensuring a sustainable and cost-effective approach. As the company explores new collaborations and adjusts its EV acquisition strategy, the evolving landscape of electric vehicles within Hertz’s fleet promises an intriguing and resilient future.

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