Hertz’s decision to include electric cars in its business seemed like a good move due to several significant items, including lower maintenance and ownership costs, but it is now clear that this grand experiment failed. That’s why the “cleaning” of the vehicle fleet follows.
Hertz has been selling its electric cars for months, and the goal is to sell at least 30,000 vehicles, including Tesla models, but also cars from other brands like Polestar. The goal is to sell cars by the end of the year. On the other hand, the company intends to keep just enough vehicles to meet the needs of customers who book trips in electric cars. However, after reporting weak earnings, Hertz is ramping up sales of Tesla models.
The plan is to continue the “purge” during 2025, and the goal is to stop losses while the value of electric vehicles declines.
In 2021, Hertz decided to “go green” and started adding electric vehicles to its fleet. 100,000 copies of the Tesla Model 3 were ordered, and although the company never reached that number, the idea seemed like a smart move. Customers liked the car, and the company only had to pay for simple interventions such as tire repairs, windshield wiper fluid refills, and the like.
However, problems arose when the Tesla company began “overnight” to cut prices. That’s when Hertz also launched a sale, because one of the ways to measure the value of this company is in fact its assets, i.e. cars. The problem arises when the company buys many cars at the highest price, and then the manufacturer drastically lowers the price several times. The result is a quick loss of a lot of money. In addition, it turns out that Tesla’s cars are not saving as much money as the company had planned. Repair costs became an issue as there were collisions, leading to high repair costs and long delivery times.
The aforementioned problems resulted in a loss of millions in the past four quarters and convinced the director of Hertz to decide to sell off most of the electric cars.
Izvor: Klix.ba / Bloomberg
Photo: Arhiva Autoblog.rs / Hertz
Source: autoblog.rs
