Toronto, Ontario — Global vehicle rental firm Hertz has announced that it will sell about 20,000 EVs from its U.S. fleet, citing higher collision and damage expenses as reasoning.
Hertz had originally said that it would order 100,000 Tesla vehicles by the end of 2022 but followed this statement with a decision to buy up to 65,000 units over five years from Polestar. Moreover, the company previously set a target for 25 percent of its car fleet to be electric by the end of 2024. Now, the company has said that they will continue to opt for gas-powered vehicles.
“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter,” Hertz said in a regulatory filing.
Hertz further said that despite the change, it would continue to focus on improving profitability for the remainder of its EV fleet.
The company’s used car website currently lists more than 700 EVs on sale, including BMW’s i3, Chevrolet’s Bolt and Tesla’s Model 3 and Model Y SUVs.
Hertz has not mentioned whether its Canadian fleet would be affected by these changes.