Hertz 180: Rental giant to sell 20,000 EVs and replace them with gas-powered vehicles

[Shawn Knight]

Unexpected: Auto rental giant Hertz has announced plans to sell off about one-third of its global electric vehicle fleet and use a portion of the proceeds to purchase vehicles with internal combustion engines to fill the gaps. Hertz announced the strategic move in a recent filing with the US Securities and Exchange Commission, noting the sale would impact multiple makes and models of EVs from its US fleet.

Electrics marked for sale will continue to be eligible for rental during the sales process, the company added.

Hertz believes the move will eliminate a number of lower margin rentals and reduce expenses related to costly collision and damage repairs.

That said, Hertz isn't totally abandoning EVs. The rental agency reiterated plans to continue to improve the profitability of its remaining EV fleet including expanding charging infrastructure and growing relationships with electric vehicle makers in hopes of securing more affordable access to parts and labor.

Hertz said it expects approximately $245 million of incremental net depreciation expense related to the sale. Share value in the company is down 3.8 percent on the news as of this writing.

The fact that Hertz is selling off some of its fleet isn't surprising, but replacing them with ICE vehicles is. The auto industry and associated players have been gung-ho about pushing the electric vehicle initiative for a few years now. To see a company of this size pump the brakes and flip a U-turn wasn't expected.

Now that it has happened, will it set precedent for others to follow suit? It's hard to say. EVs certainly have their advantages but as Hertz has demonstrated, they may not be right for all situations – at least, not yet. Or maybe Hertz just went too heavy, too fast with its EV investment.

On a side note, EVs could benefit greatly from something like a major battery advancement or some other breakthrough that drastically reduces cost and / or improves range, but we're still waiting for it to materialize.

Image credit: Upgraded Points, Luca Merz

Permalink to story.

https://www.techspot.com/news/101491-hertz-180-rental-giant-sell-20000-evs-replace.html

 

[redgarl]

The problem is insurance companies are forcing people to replace the whole battery if there is an accident which is costly.

 

[Superconductor]

The truth is coming out. I'm enjoying the whole thing.

 

[Theinsanegamer]

The problem is insurance companies are forcing people to replace the whole battery if there is an accident which is costly.

The manufacturer will not repair a battery as there is no guarantee that the cells are undamaged.

Which is something we warned about with EVs, but were ignored because "Da FuTuRe"

 

[redgarl]

The truth is coming out. I'm enjoying the whole thing.

Truth is that the ICE have an atrocious energetic outcome of around 20%. So you lost about 80% of the energy in the process.

In comparison, having a powerplant burning fuel to power EUV has a way better energetic outcome than any ICE would provide.

The truth is coming out and I am enjoying the whole thing...

 

[redgarl]

The manufacturer will not repair a battery as there is no guarantee that the cells are undamaged.

Which is something we warned about with EVs, but were ignored because "Da FuTuRe"

However the business is booming and many companies are now providing such services. It is just a matter of time before the industry and the businesses adapt to the new reality.

 

[Nobina]

ICE cars are better than electric cars.

 

[wiyosaya]

Personally, I bet they are getting rid of them because people who don't own an EV and therefore, have no clue how to manage them in daily use probably told Hertz "Sure, I'll take an EV" and then, through their own ignorance, the experience was not ideal for them, thus causing them to complain to Hertz and ask Hertz "Why did you give me such a piece of crap that I don't know how to manage?" Current EVs are not for people that have no clue how to manage them. They are not as easy to manage as an ICEV; they take planning, understanding, and knowledge of how to manage them. Hertz likely did not realize that its only the few who would have a good experience with a rental EV.

However the business is booming and many companies are now providing such services. It is just a matter of time before the industry and the businesses adapt to the new reality.

And just a matter of time before better batteries and other, better EV components find their way to consumers. For instance - https://www.techspot.com/community/...er-1-000-charge-cycles-in-lab-testing.283856/ and https://www.techspot.com/news/99308-toyota-battery-breakthrough-lead-745-mile-evs.html

 

[wiyosaya]

ICE cars are better than electric cars.

I bet there are EV owners out there that would disagree with you. Did you get that info from first-hand experience, or are you just parroting some site that says "EVs will be the end of the world?"

 

[toooooot]

A much stronger casing for battery with shock proof defense inside could help the battery survive and stay intact even in serious collisions.
Although, I wonder how many batteries would still be thrown away because a compromised battery is still a fire risk.

 

[Anton Longshot]

The EV's should be replaced by man-powered open-bottom Flintstone cars.
Yabba Dabba Doo!

As environment-friendly as it gets.

 

[wiyosaya]

A much stronger casing for battery with shock proof defense inside could help the battery survive and stay intact even in serious collisions.
Although, I wonder how many batteries would still be thrown away because a compromised battery is still a fire risk.

Sure, better casings for Lithium batteries would reduce or eliminate fires from batteries punctured in a collision. Lithium batteries are by far the problematic batteries.

Lithium batteries, in general, are, even if at a snail's pace, being replaced by batteries that will not catch fire when they get punctured.

 

[Superconductor]

Truth is that the ICE have an atrocious energetic outcome of around 20%. So you lost about 80% of the energy in the process.

In comparison, having a powerplant burning fuel to power EUV has a way better energetic outcome than any ICE would provide.

The truth is coming out and I am enjoying the whole thing...

Your math is flawed and it's all the same ECO typical shell-game with the usual side of ECOEMO. Save your religion for someone else, so I can enjoy that back-and-forth too!

 

[yRaz]

Your math is flawed and it's all the same ECO typical shell-game with the usual side of ECOEMO. Save your religion for someone else, so I can enjoy that back-and-forth too!

It's true, about 80% of the energy in a typical gas engine is lost as heat and mechanical losses in the drive train. It's because of this that mileage isn't nearly as impacted in towing with ICE engines as it is with an EV, the ICE vehicle is already inefficient. I've been saying for years that plug in hybrids are the way to go and we're finally starting to see some pop up where it counts in 2024.

 

[Superconductor]

It's true, about 80% of the energy in a typical gas engine is lost as heat and mechanical losses in the drive train. It's because of this that mileage isn't nearly as impacted in towing with ICE engines as it is with an EV, the ICE vehicle is already inefficient. I've been saying for years that plug in hybrids are the way to go and we're finally starting to see some pop up where it counts in 2024.

The efficiency of a motor, be it ICE or DC brushless in an EV/hybrid is only part of the entire "system". That was my point. You get the energy from somewhere and the losses and entire consumption chain to produce either type of vehicle is where the rubber meets the road, no pun intended. The topic goes way beyond the myopic focus on individual vehicles and the economics of it is obviously playing out. Just look at the adoption rate of pure EV's in combination with stories like the one above.

But I am in full agreement that plug-in hybrids make a lot more sense vs. pure EVs. A few companies are doing plug-in hybrids right but it's a minority of the producers. e.g. Prius Prime is one nailing it. But it still doesn't solve the bigger problem of efficiencies up stream...

20 years from now with better battery tech, cleaner upstream energy sourcing and economies of scale that make sense across the board... then we'll talk.

 

[yRaz]

The efficiency of a motor, be it ICE or DC brushless in an EV/hybrid is only part of the entire "system". That was my point. You get the energy from somewhere and the losses and entire consumption chain to produce either type of vehicle is where the rubber meets the road, no pun intended. The topic goes way beyond the myopic focus on individual vehicles and the economics of it is obviously playing out. Just look at the adoption rate of pure EV's in combination with stories like the one above.

But I am in full agreement that plug-in hybrids make a lot more sense vs. pure EVs. A few companies are doing plug-in hybrids right but it's a minority of the producers. e.g. Prius Prime is one nailing it. But it still doesn't solve the bigger problem of efficiencies up stream...

20 years from now with better battery tech, cleaner upstream energy sourcing and economies of scale that make sense across the board... then we'll talk.

You make a lot of valid points and I'm not going to argue back. it's my opinion that Toyota is the only manufacturer who has seen that hybrids, specifically plug in hybrids, make the most sense. A plug in hybrid with 40-50 miles of all electric range is perfect for 99% of peoples trips with the hybrid system increasing gas milage by almost 3 times.

This also decreases the amount of batteries needed by about 80%, so less mining Lithium. Further, most hybrids are flex fuel vehicles which mean they can run on pure ethanol so we could theoretically eliminate our need for burning oil.

The pros of plug in hybrids are so absurdly abundant I can't see why anyone would want a pure ICE or EV vehicle outside of a perceived "cool factor". I like big trucks but I also like Teslas, no one is saying we can't like both.

But my favorite thing I've heard recently about plug in hybrids is what my friend said he is doing to his RV. He's putting 2KW of solar on his RV to charge his hybrid towing SUV at his camp. That way he can drive around almost entirely on battery power when at his camp which is one of the coolest ideas I've ever heard.

Only thing to make it cooler would be making your own ethanol on a homestead to power your plugnin hybrid between charges.

 

[Jme Kerul]

Hertz believes the move will eliminate a number of lower margin rentals and reduce expenses related to costly collision and damage repairs

 

[Kashim]

The truth is coming out. I'm enjoying the whole thing.

What truth is that exactly? You realize fossil fuel reserves are finite, right? We will run out at some point. Everyone will have to switch to something else eventually, it's inevitable. You ICE fans can snicker all you want, but there will come a day when gasoline will cost $20/gallon. I would love to see the look on your face then. We are using nearly 100 million barrels of oil per day right now. Do the math, that's 3.6 BILLION barrels per year.

Bottom line: your feelings and opinions about electric cars are meaningless. They're here to stay.

 

[kiwigraeme]

Personally, I bet they are getting rid of them because people who don't own an EV and therefore, have no clue how to manage them in daily use probably told Hertz "Sure, I'll take an EV" and then, through their own ignorance, the experience was not ideal for them, thus causing them to complain to Hertz and ask Hertz "Why did you give me such a piece of crap that I don't know how to manage?" Current EVs are not for people that have no clue how to manage them. They are not as easy to manage as an ICEV; they take planning, understanding, and knowledge of how to manage them. Hertz likely did not realize that its only the few who would have a good experience with a rental EV.


And just a matter of time before better batteries and other, better EV components find their way to consumers. For instance - https://www.techspot.com/community/...er-1-000-charge-cycles-in-lab-testing.283856/ and https://www.techspot.com/news/99308-toyota-battery-breakthrough-lead-745-mile-evs.html

Here in NZ the rental car companies got rid of all the manual campers years ago . I used to here them screaming as they left the airport in first or second gear . Must have been expensive replacing so many clutches etc
The internet is filled with people , not even knowing how to start certain cars etc
I've definitely been stumped for a minute with some cars when jumped in , how to say find reverse - Do I lift , push down or pull up or pull hard to one side and pull down?

 

[trparky]

Bottom line: your feelings and opinions about electric cars are meaningless. They're here to stay.

That may be so, but right now EVs are nowhere close to being able to replace ICE cars. Maybe in five years most of the issues will be fixed but until then, don't count on EVs to be able to replace ICE cars.

 

[p51d007]

If they ever get the EV's range in ANY weather condition to match ICE, and, get the recharge to 100% the same amount of time it takes to fill up an ICE vehicle, then, get the PRICE DOWN, I might think about it.

 

[bexwhitt]

ICE cars are better than electric cars.

Better at what, range sure, polluting urban areas' hell yes, giving money to countries who are enemies of democracy 100%. Nicer to drive, not on your life.

 

[cackocacho]

Don't fix what isn't broken. Gas has worked fine for over a century.

This garbage is becoming so nauseating.

 

[Superconductor]

What truth is that exactly? You realize fossil fuel reserves are finite, right? We will run out at some point. Everyone will have to switch to something else eventually, it's inevitable. You ICE fans can snicker all you want, but there will come a day when gasoline will cost $20/gallon. I would love to see the look on your face then. We are using nearly 100 million barrels of oil per day right now. Do the math, that's 3.6 BILLION barrels per year.

Bottom line: your feelings and opinions about electric cars are meaningless. They're here to stay.

Thanks for joining in ECOEMO. I'd recommend you widen you research & readings on the topic. You're very ill-informed.

 

[PEnnn]

1000s of of the largest companies companies on the planet are totally wrong.

But the 12.5 people here worshiping the ICEs and the fossilized oil companies are all 128% correct.

The same dinosaurs-to- be who vommed exactly the same gems about solar energy, wind energy, etc.