American rental company Hertz
Hertz, the No. 1 rental car company in the United States, decided to sell 20,000 electric vehicles and switch to internal combustion engine vehicles due to maintenance costs. Hertz, which has a total of 500,000 vehicles, has increased its electric vehicle fleet to 50,000 in line with the trend of introducing eco-friendly vehicles, and plans to replace 40% of these with internal combustion engine vehicles. In the trend of converting internal combustion engine vehicles to electric vehicles, a completely opposite movement has occurred.
According to Bloomberg on the 11th (local time), Hertz began selling electric vehicles last month and plans to sell 20,000 units by the end of this year. Hertz CEO Stephen Shea appeared on CNBC that day and said, “The cost of maintaining electric vehicles is increasing significantly, and customer demand is not as sufficient as expected.”
In fact, electric vehicles are heavier than internal combustion engine vehicles, so there is a greater burden on consumables such as brakes and tires. In addition, even if the battery, a key component, is not significantly damaged, it may have to be replaced with a new product, making repair costs 20 to 30% more expensive than internal combustion engine vehicles. In addition, it is analyzed that the high number of accidents due to the strong force and acceleration that require a reducer is also leading to an increase in costs. As a result of analyzing traffic accidents in the United States over the past year, statistics were released showing that Tesla drivers, which only sell electric vehicles, had the most accidents. Insurance premiums for electric vehicles are also more expensive than for internal combustion engine vehicles.
Morgan Stanley interpreted Hertz’s sale of electric vehicles as “another sign of slowing demand for electric vehicles.” Electric car rental is a way to introduce electric cars to ordinary drivers, but if the hidden costs and management difficulties of electric cars are highlighted, as in the case of Hertz, the conversion to electric cars may be further delayed. On this day, Tesla’s stock price, the No. 1 electric vehicle company in the New York stock market, closed at $227.22, down 2.87% from the previous day.
2024-01-12 03:18:54
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