Car rental firm Hertz to sell 20,000 EVs for gas-powered vehicles

Hertz Global Holdings, a well-known car rental company, has made a significant decision that could affect the electric vehicle (EV) industry. They announced plans to sell approximately 20,000 electric vehicles from their U.S. fleet and replace them with gas-powered vehicles. This decision comes from Hertz citing higher expenses related to collision and damage, primarily associated with their EVs. Consequently, this move led to a drop in Hertz’s stock value, with shares falling by as much as 9% during premarket trading.

It’s worth noting that Hertz had previously made headlines for its ambitious plans in the EV sector. In April 2022, they announced intentions to purchase up to 65,000 EVs over five years from Polestar, and they had also placed an order for 100,000 Tesla vehicles by the end of 2022. Moreover, their used car website offers a diverse selection of over 700 EVs for sale, including models from BMW, Chevrolet, and Tesla.

This development raises important questions about the challenges and considerations that businesses like Hertz face when transitioning to electric vehicles and how those decisions can impact their operations and bottom line…………[read more]

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What are the intricate connections between a company’s business strategy when embracing new technologies like electric vehicles? What are the economic and financial factors that influence a company’s decision to shift from electric vehicles (EVs) back to gas-powered cars, as seen with Hertz?

*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.

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Doristin

10 months ago

When a company embraces new technologies like electric vehicles, they need to consider factors like market demand and cost of production. The decision to shift back to gas-powered cars can be influenced by operational costs, customer preferences, and market conditions. Companies evaluations are based on economic and financial factors.

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Armando Gonzalez

10 months ago

Factors like the cost of production, consumer demand, government regulations, and infrastructure availability all play a role in a company’s decision. As for Hertz, their decision to shift back to gas-powered cars might have been influenced by factors such as operational challenges, cost considerations, or changes in market conditions.