US Rental car firm Hertz announced this week it will cut 20,000 battery electric
vehicles from its rental fleet and replace them with petrol powered models. The
move would affect a third of its US electric vehicle rental fleet. According to CNN
Business Hertz’s US CEO Stephen Scherr cited ongoing costs of repair as the
main reason behind the decision. Scherr telling analysts that collision and
damage repairs on electric vehicles can often run to twice the costs associated
with petrol of diesel engine models. A Securities and Exchange Commission
filing submitted by Hertz estimated it would lose around US$245 million on the
electric vehicles it is prepared to sell – the major loss attributed to slowing
demand for used electric cars on the used-car market, especially for Tesla built
vehicles, estimated to make up 80 per cent of the company’s 60,000 battery
powered fleet.

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