by Mish Shedlock, Mish Talk:
Note to rental car agencies and auto manufacturers: Don’t do foolish things.
After Big Tesla Bet, Hertz Selling One-Third of EV Fleet
Hertz is selling a third of its EVs globally, with 20,000 in the US and will use some of the money to buy more Internal Combustion Engine (ICE) gasoline-powered cars.
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Please consider After Big Tesla Bet, Hertz Selling One-Third of EV Fleet
Hertz said Thursday that it would sell about 20,000 EVs in the U.S., and use some of the proceeds to purchase internal-combustion-engine vehicles. The company in a regulatory filing cited weaker demand for electrics, and their higher operating costs.
The move is the latest example of a swift retrenchment by the car business on EVs. After years spent outlining aggressive expansion plans, automakers in recent months have put some EV projects on ice and dialed back production forecasts, citing signs that U.S. consumers aren’t ready to move to cars powered exclusively by batteries as quickly as once thought.
The car industry’s effort to sell consumers more broadly on EVs has run into some resistance lately as automakers have largely exhausted the pool of early adopters who tend to be willing to take a chance on new technology.
The company said it would log a $245 million incremental net depreciation expense related to the sale of the 20,000 electric vehicles. Hertz sells its used rental vehicles directly on its website.
Hertz Was Foolish
- The infrastructure was not in place.
- There is only a small pool of people familiar with the nuances of EVs, especially braking.
- No one in their right mind would want to figure out where and how to charge an EV on the road, in an unfamiliar location.
So, why the rush?
Hertz wanted 25 percent of its fleet to be EVs by the end of the year. That just went out the window.
Front-End Collision Hoot of the Day
Reuters noted “Hertz even limited the torque and speed on the EVs and offered it to experienced users on the platform to make them easier to adapt after certain users had front-end collisions.“
Hertz has to limit the speed to prevent crashes. What a hoot.
