Another example of the failure of the EV mandate. Even with subsidies and mandates, the public does not want them—and private business is forced to take the financial losses.
“Hertz (NASDAQ:HTZ) is cutting its losses in its adoption of electric vehicles and has decided to sell ~20K EVs, or one-third of its global fleet, and reinvest a portion of the proceeds in internal combustion engine vehicles.
The sale is expected to cost the company ~$245M of net depreciation in addition to the depreciation expense Hertz (HTZ) will report in Q4 2023.
Hertz should sue Biden and the Democrats for this fraud on them by abusing government powers.
Hertz to unload 20,000 EVs and replace with gas-powered vehicles
MSN.com, 1/10/24 https://www.msn.com/en-us/autos/news/hertz-to-unload-20-000-evs-and-replace-with-gas-powered-vehicles/ar-AA1mOtuH
Hertz (NASDAQ:HTZ) is cutting its losses in its adoption of electric vehicles and has decided to sell ~20K EVs, or one-third of its global fleet, and reinvest a portion of the proceeds in internal combustion engine vehicles.
The sale is expected to cost the company ~$245M of net depreciation in addition to the depreciation expense Hertz (HTZ) will report in Q4 2023.
Last quarter, the car rental company reported disappointing results prompting CEO Stephen Scherr to assure investors that the company is “focused on the cost side to improve margins.”
Scherr acknowledged the difficulty — and cost — of maintaining the EV fleet during the Q3 earnings call recognizing that collision repairs to EVs “can often run about twice that of a comparable combustion engine vehicle.”
“Had our fleet in Q3 been similarly sized and comprised solely of [internal combustion engine] vehicles our EBITDA margin would have been several margin points higher,” Scherr added.
With the remaining EVs available for rental, Hertz (HTZ) will implement initiatives to improve their profitability by making more charging stations available, growing relationships with EV manufacturers, and making it easier for customers to acclimate to an EV rental.
By the end of 2025, at which time all planned EVs will be sold, the company expects the benefit to adjusted corporate EBITDA will be equal to the incremental net depreciation expense that will be recognized in Q4 2023, and will generate $250M-$300M in free cash flow in 2024-2025.
For Q4, Hertz (HTZ) expects revenue to be in the range of $2.1B-$2.2B versus the Street estimate of $2.2B. The company will report results from the latest quarter on Feb. 6.
Hooray for Hertz to face the truth and be bold enough to report the losses they’re suffering from going Gang-Green and Woke, a double whammy a study in business do’s and don’ts.
I liked the comment to sue Joe Buy-Dung. Convert his 67 Stingray to EV, watch the thing run out of energy really quick. There should be tens of thousands of John Doe’s, et al for this suit. Hertz needs to start a “Bring Back the Nukes” and Drill, Baby Drill campaigns before this nation comes to a complete standstill economically and energy wise.