(ConservativeJournal.org) – Car rental company Hertz is making a major decision about continuing to use electric vehicles (EVs) as a part of their business model. The company is planning to sell tens of thousands of their EVs due to lack of demand from renters as well as inflated maintenance costs and other complications.
Hertz had previously made a big deal of their 2021 announcement regarding the company’s plan to purchase 100,000 Tesla EVs. At the beginning of 2024, however, market demand has dropped such that the industry grew just 1.3% in the final quarter of 2023.
Consumers cite concerns about mileage, the availability of charging stations, repair and maintenance costs, as well as the potential for EVs to simply fail to operate in extreme weather.
Hertz CEO Stephen Scherr implied the company presumed the costs associated with EVs would come down over time. He said their ability to mitigate the high repair costs wasn’t sufficient to maintain the expansive fleet of vehicles. They’re planning to liquidate at least 20,000 of their EVs.
Analysts with financial giant Morgan Stanley warned that the incident could mark a wider trend across the industry. They indicated that the market is rejecting a wider adoption of EVs as individuals are too strapped for cash to make the purchase. Most drivers see EVs as luxury vehicles.
As if on cue, an organization of approximately 4,000 auto dealers sent an open letter to President Biden last year indicating that Biden’s plan to promote EVs was failing, with many vehicles sitting on the lot unsold. Biden’s wish to see two-thirds of new vehicle purchases by 2032 being EVs is seen as “highly unrealistic,” according to the note.
Dealers said the recent shift in demand is stark, with fewer EVs purchased than in prior periods. They warned that the automobiles are accumulating on their lots as the government incentivized their production without the concomitant consumer demand.
In the letter, the dealers argued that they know best what consumers are interested in as it’s their business. They added that there just isn’t enough demand to meet the supply, as most new buyers prefer gas operated vehicles.
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