Written by Cláudio Afonso | [email protected] | LinkedIn | X
On Thursday, Hertz, the car rental company, revealed an increase in the number of electric vehicles (EVs) it plans to remove from its fleet, from approximately 20,000 to 30,000 units.
“In the first quarter, the Company upsized its EV disposition plan by 10,000 vehicles, for a total of 30,000 EVs intended for sale in 2024,” the company stated.
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Hertz disclosed that “incurred a $195 million charge to vehicle depreciation to write down the EVs held for sale which were remaining in inventory at quarter-end to fair value and recognize the disposition losses on EVs sold in the period”.
In 2021, the rental company said it would order 100,000 vehicles from Tesla until the end of 2022. In April 2022, two years ago, Hertz announced that would continue to increase its EV fleet by buying up to 65,000 units (over five years) from Polestar.
In January, Hertz said it was planning to sell about 20,000 electric vehicles, including Teslas, from its U.S. fleet. At the time, the company claimed “higher expenses related to collision and damage” as it started switching back to gas-powered vehicles.
“Vehicle depreciation in the first quarter of 2024 increased $588 million, or $339 on a per unit basis, primarily driven by deterioration in estimated forward residual values and disposition losses on ICE vehicles compared to gains in the prior year quarter,” Hertz stated.
The company added that “of the $339 per unit increase, $119 was related to EVs” held for sale.Â
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Written by Cláudio Afonso | [email protected] | LinkedIn | X
