The American car rental company Hertz will sell around a third of its electric fleet around the world to adjust its supply to less sustained demand than expected, but assures that it will not give up its ambitions in this field. The group explains, in a document presented to the US market regulator (SEC), that the sale of these 20,000 vehicles aims to “allow a better balance between supply and demand forecasts for electric models.”
The deal will also “eliminate a disproportionate number of low-margin rentals and reduce maintenance costs associated with damage to electric vehicles,” Hertz said. The sale of part of the electric fleet will result in a depreciation of $245 million, which will be included in the accounts for the fourth quarter of 2023. Despite this sale, Hertz says it remains committed to “implementing its strategy in relation to vehicles electrical”.
Falling gasoline prices
The rental company caused a sensation in October 2021 by announcing an order for 100,000 Tesla brand cars, delivered until the end of 2022. Almost two and a half years after this communication, Hertz only has about 60,000 electric vehicles, a fleet that Therefore, it will be amputated by a third party. In its 2022 annual report, published in February 2023, the group stated that it aimed to have a quarter of its vehicle fleet electric by the end of 2024. By the end of 2022, Hertz had around 550,000 vehicles worldwide. world.
Noting that demand was not growing as fast as expected, several American automakers have decreased their consumption of electric vehicles in recent months. Although it is growing, the US market is penalized by falling gasoline prices, delays in the deployment of a sufficient network of charging stations and the still high purchase cost of electric vehicles.
In the document released Thursday, Hertz said it forecast revenue of between $2.1 billion and $2.2 billion, a slightly more moderate range than the $2.19 billion expected by analysts, according to a consensus established by FactSet.
Source: BFM TV
