After adding a large number of electric vehicles to its fleet over recent years, auto rental service Hertz is set to sell off a third of its EVs.
Hertz will reportedly offload around 20,000 EVs and subsequently divert the funds earned from their sale toward acquiring traditional gas engine cars.
According to Hertz executives, EVs have hurt the business’s bottom line due to EVs’ high repair cost and higher depreciating value.
“The MSRP declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden,” said Hertz CEO Stephen Scherr.
