Hertz CEO to resign EOM after EV purchase debacle

[thewayne]

The idea wasn't bad, per se, I think he was too early to the game and it cost the company approx $348 mil in the process.

I've already written about the Hertz fire sale of Teslas and other EVs. Now, the sale of their Tesla inventory was from a whole different set of problems. Tesla started slashing their retail prices, and Hertz was locked into a contract, which screwed the rental company from day 1. And Tesla is infamous for being slow on repair parts and body panels, while rental cars are equally infamous on getting banged up a bit. Not a good combination. Deflating value, inflating repair costs. Excellent formula for a CEO to find them out on their ear.

You also have a problem of infrastructure. Dump a whole bunch of EVs into areas with not very good charging infrastructure everywhere - and some of that poorly maintained or not working at all - and there are issues. A lot of EV rental drivers don't understand the tremendous acceleration these cars are capable of, nor do they follow good charging station etiquette.

Hybrids - not the plug-in variety - I think are a much better investment for car rental companies, and most of them have on offer, I've driven a couple when my Subaru was last banged up a few years back and will probably end up with one for my next car.

https://www.thegatewaypundit.com/2024/03/hertz-ceo-resigns-blowing-big-gamble-evs/

Comments

[disneydream06]

Like you said good idea, but should have waited to see about all the bugs. :o
Hugs, Jon

[moonhare]

I didn't see Tesla mentioned in this post's links or tags. My daughter rented an EV from some company back in November, and it was a nice enough vehicle. She even found a 'free' charging station locally to fill it up before returning.

I'd consider buying a hybrid or EV, as a next vehicle, if ever they make them more competitive and cost effective.

[thewayne]

I like the new generation of the Toyota Prius hybrid and was extremely happy with my previous car, a Toyota Matrix AWD.  It needed one dealer service in its ten year life with me.  I like my Subaru for snow performance and ground clearance, but electronic bits and their controllers are proving expensive when they wear.  I'm not yet completely sold on BEV or plug-in hybrid, and I think they have some major battery improvements coming very soon but it's hard to say when we'll see them.

[silveradept]

I think Hertz probably had it right on going to EVs, but the problems of rental markets, parts availability, and the need to be able to recharge the battery in places that don't have the infrastructure for it were the things that made it not work as well as it could have.