Hertz Dumps More BEVs Amid Q1 Losses

Higher BEV repair costs and greater depreciation see car rental giant divest 30,000 electric cars so far this year.

Paul Myles, European Editor

April 29, 2024

1 Min Read
Hertz BEV
BEVs proving too expensive to run for rental firm.

Hertz continues to dump its fleet of battery-electric vehicles, citing the huge repair costs hitting its operating bottom line.

The car rental giant announces a further 10,000 vehicle sales to push its total BEV sell-off so far this year to 30,000 vehicles, reports Reuters. It blames the higher repair costs for BEVs against those for internal-combustion and gas-hybrid powertrain cars as a major contributor to its worse-than-expected quarterly operating losses.

The company also says it took a $588 million hit in vehicle depreciation costs during the quarter, of which $195 million was related to BEVs held for sale.

In a company statement announcing the quarterly losses, Hertz CEO Gil West says: “Fleet and direct operating costs weighed on this quarter's performance. 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. These, along with creating a superior customer experience, will be our focus as we position ourselves to take advantage of strong travel demand in this transition year. We've put the right strategy in place, and I see a clear path for Hertz to generate sustainable and higher earnings for our shareholders.”

About the Author(s)

Paul Myles

European Editor, Informa Group

Paul Myles is an award-winning journalist based in Europe covering all aspects of the automotive industry. He has a wealth of experience in the field working at specialist, national and international levels.

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