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Hertz to sell 20k EVs in shift back to gas-powered cars

bloomberg.com

61–70 of 834 posts

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#61
So Hertz is continuing their narrative to blame EV's for their own executive mistakes.

If you dig deeper you'll find that:

- most of their EV's were rented to Uber drivers. - All Uber rentals, gas and EV, have higher milage, higher maintenance costs and lower resale values.

In other words this state of affairs was highly predictable. That it wasn't taken into account is the fault of Hertz executives. They're trying to shift blame off of their own shoulders.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#62
post #59

"due to higher expenses due to collision damage" I wonder if that means insurance, frequency of collisions, average damage in a collision, or cost to repair disparity

I imagine if you're operating on the scale of Hertz it's cheaper to self-insure. Anecdotally it seems like Teslas have higher damage in a collision (eg more expensive and fragile electronics in the bumper) and are more expensive to repair. The last body shop I went to even had a separate hourly rate for Teslas

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#63
post #59

"due to higher expenses due to collision damage" I wonder if that means insurance, frequency of collisions, average damage in a collision, or cost to repair disparity

I imagine if you're operating on the scale of Hertz it's cheaper to self-insure. Anecdotally it seems like Teslas have higher damage in a collision (eg more expensive and fragile electronics in the bumper) and are more expensive to repair. The last body shop I went to even had a separate hourly rate for Teslas

Isn't that just pure gouging? If a Tesla is harder to repair it'll take longer and be more expensive for that reason, no increased hourly rate necessary.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#64
post #59

"due to higher expenses due to collision damage" I wonder if that means insurance, frequency of collisions, average damage in a collision, or cost to repair disparity

This is Tesla that we are talking about. They are renowned for poor customer support, let alone fleet support.

Rental cars get dinged up all of the time and you can get a new fender on a Malibu in under a day.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#65
Car rental companies regularly rotate through their fleet. I suspect these are cars that are supposed to go up for resell anyway and they are just not replacing them with equivalents.

EVs are already not a good fit for rental cars - I don't think travelers on vacation want to figure deal with a charging plan. It's also really hard to sell even a luxury sedan as an upgrade when everyone wants an SUV. I'd be curious to know if something like the Rivian would fare better as a premium option.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#66

Earlier quoted context omitted.

I imagine if you're operating on the scale of Hertz it's cheaper to self-insure. Anecdotally it seems like Teslas have higher damage in a collision (eg more expensive and fragile electronics in the bumper) and are more expensive to repair. The last body shop I went to even had a separate hourly rate for Teslas

Isn't that just pure gouging? If a Tesla is harder to repair it'll take longer and be more expensive for that reason, no increased hourly rate necessary.

Or... you need a person who is specialized in working on EVs. EVs are still not the majority, so anything different from the norm will need different training, and thusly higher hourly rates to work on them.

When Ford started making putting aluminum bodies on their F150s, they had special training programs for doing bodywork and repair on them. I guarantee that cost was passed down to you.

It may not even take longer to do the repairs, it might take the same amount of time once you learn how to work on them. That said, I guarantee the shops and insurance companies are recuperating the costs of that extra training.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#67
post #59

"due to higher expenses due to collision damage" I wonder if that means insurance, frequency of collisions, average damage in a collision, or cost to repair disparity

I imagine if you're operating on the scale of Hertz it's cheaper to self-insure. Anecdotally it seems like Teslas have higher damage in a collision (eg more expensive and fragile electronics in the bumper) and are more expensive to repair. The last body shop I went to even had a separate hourly rate for Teslas

This is pretty common among more expensive brands from what I understand. When I had work done on my Tesla it was the first time I had encounter it, but the couple of repair shops I was referred to by Tesla also had individual hourly rates for BMW, Porsche, Land Rover, etc.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#68

Earlier quoted context omitted.

I imagine if you're operating on the scale of Hertz it's cheaper to self-insure. Anecdotally it seems like Teslas have higher damage in a collision (eg more expensive and fragile electronics in the bumper) and are more expensive to repair. The last body shop I went to even had a separate hourly rate for Teslas

Isn't that just pure gouging? If a Tesla is harder to repair it'll take longer and be more expensive for that reason, no increased hourly rate necessary.

If the people with the technical skills/certifications for a particular brand are harder to come by, I think it’s a pretty pure supply/demand thing.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#69

Car rental companies regularly rotate through their fleet. I suspect these are cars that are supposed to go up for resell anyway and they are just not replacing them with equivalents. EVs are already not a good fit for rental cars - I don't think travelers on vacation want to figure deal with a charging plan. It's also really hard to sell even a luxury sedan as an upgrade when everyone wants an SUV. I'd be curious to…

> It's also really hard to sell even a luxury sedan as an upgrade when everyone wants an SUV

I don't want an SUV. I get angry at rental companies when they try to give me one.

I increasingly don't recognize this country I grew up in with the car culture. In the early 90s nobody wanted SUVs either. The truck and SUV craze was apparently sparked by an emissions regulatory loophole, where larger vehicles were excempt because they were meant for work.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#70

I recently rented a car from Hertz. I knew I wouldn’t need more than a single full tank of gas for my trip (and if I underestimated I could just stop at a gas station). I wasn’t sure what might happen with the (cheaper!) Tesla. So I opted for the ICE vehicle. (Where could I charge it? The hotel? Do I need to find a super charger? Etc. Just more headache than I wanted on a vacation).

This seems to be an extension of the biggest problem with EVs: The edge cases. Even if the edge case is only 1% of your travel, do you want to buy a car that can't do it? It can be anything . You're living in Minnesota and your dad in Chicago had a heart attack. An ICE can get you there in about ~7 hours. An EV... you're going to need 1 supercharging station at a minimum, probably 2. Or, you just decide you want a ro…

> Even if the edge case is only 1% of your travel, do you want to buy a car that can't do it?

Why not? If my car covers 99% of my needs, that seems fine. I can rent a vehicle for the other 1%.

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