Nicely balanced discussion with some great points. The troubling part is that Hertz operations folks could have figured these points out before buying 20K vehicles - so the question becomes “Why did they make the choice in the first place?”
I have a friend that has fixed food packaging equipment for major multinational companies for several years. Companies like Tyson. He started a sole proprietorship and he told me his normal big clients would only hire him if he created some kind of ESG mission statement. Nuts.
Great article. I haven't rented a car in years, so I never even thought about the issue of "refueling" - which is a pain when you are trying to drop off your car so you can catch your flight. Add another x number of hours to refuel, and there goes your travel sechedule.
Really, didn't *anyone* at Hertz think this through?
I Read that the cost to charge an EV equates to about $18/gallon of gas. No idea how that was derived but this opportunity cost (among others) is worth deeper exploration. That said I do love my ebike. And if I lived in a dense city and just needed a runabout car, I might think about an EV, or maybe a hybrid would be even better.
What nobody discusses is that the battery in an EV does not last forever, is not covered by the warranty, and can cost more than the car is worth to replace.
We are just in the first inning of understanding the costs of EVs.
It isn't pushed more because hybrids won't limit your mobility. I believe the end goal of those pushing EVs is to eliminate the traditional mobility of the average American. Beyond the cost, infernal government subsidies and charging issues there is the minor matter that both electrical generation capacity and grid distribution would have to be expanded dramatically (2x - 4x beyond the normal growth in electricity usage) to support EVs as a primary mode of transportation. That obviously isn't happening - the same folks pushing EVs are pushing wind, solar and unicorn farts as replacement for our current electricity generation and no one wants more high voltage lines around.
If I may, let's not also forget about increased insurance costs. They go through tires fast, because they are fast, not just heavy. Probably resulting in more collisions from lead foot types, which result in higher totaling of the vehicle stats, versus gas.
Also, I need to do more research, but it seems unlikely that 3rd party battery heaters would be allowed for Teslas? And, I guess, that the factory heaters can't handle Chicago'ish weather? Who the hell wants to deal with charging drama, battery drama, range drama, while dealing with extreme weather drama? Being a woke EV trail blazer is one hell of a chore!
The charge whack when turning it in undercharged is hilarious. EV's great for most of CA, but are not the future for most places.
-->"Hertz is getting out of the EV business. They will sell 20,000 EVs that they had purchased."
It seems Hert is selling only portion of their fleet. The catalyst is earnings.
From MotorTrend magazine:
Hertz is dumping 20,000 EVs, a portion of its roughly 50,000-EV fleet. Many of the EVs that Hertz owns are used for its rideshare rental program with companies like Uber. The instigating factor seems to have been repair costs for rideshare EVs, which were much higher than expected. This is not maintenance costs, which Hertz notes are lower than ICE vehicles, but rather collision repair costs. According to Hertz VP of Investor Relations, "collision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle." The difference is significant enough that it weighed significantly on Q3 earnings. https://www.motortrend.com/news/hertz-ev-fleet-sale-tesla-report/
(I've edited for conciseness.)
It seems a fleet owner has discovered that their collision damage experience results in EVs being "totaled" much more frequently than ICE vehicles. The story states the problem exists in the rideshare program, which implies Hert is exiting the rideshare business venture, not the EV rental market.
When the public rents a vehicle, drivers usually utilize their existing auto insurance coverage. I wonder how this collision damage experience (cost) will affect such underwriting coverage or costs--now or in the future?
Nicely balanced discussion with some great points. The troubling part is that Hertz operations folks could have figured these points out before buying 20K vehicles - so the question becomes “Why did they make the choice in the first place?”
Combination of Virtue signaling and better ESG score.
Great point about the ESG score.
I have a friend that has fixed food packaging equipment for major multinational companies for several years. Companies like Tyson. He started a sole proprietorship and he told me his normal big clients would only hire him if he created some kind of ESG mission statement. Nuts.
Might have bought when and where subsidies were greatest, too.
Most likely!
Great article. I haven't rented a car in years, so I never even thought about the issue of "refueling" - which is a pain when you are trying to drop off your car so you can catch your flight. Add another x number of hours to refuel, and there goes your travel sechedule.
Really, didn't *anyone* at Hertz think this through?
.
Hertz indicated that the cost to maintain even EVs under manufacturers' warranty was greater than for ICE vehicles.
Had to hire different mechanics.
I wrote about it here: https://themusingsofthebigredcar.com/when-markets-speak-electric-vehicles/
Great read, JC.
JLM
www.themusingsofthebigredcar.com
That's amazing, because EVs are touted as no maintenance except tires and software updates-until the battery can't be charged anymore (10-12 years)
I Read that the cost to charge an EV equates to about $18/gallon of gas. No idea how that was derived but this opportunity cost (among others) is worth deeper exploration. That said I do love my ebike. And if I lived in a dense city and just needed a runabout car, I might think about an EV, or maybe a hybrid would be even better.
Nah. Here's a good article from Motor Trend.
The big variable is the cost/kwh where you live. That can vary wildly.
https://www.motortrend.com/features/how-much-does-it-cost-to-charge-a-tesla/
What nobody discusses is that the battery in an EV does not last forever, is not covered by the warranty, and can cost more than the car is worth to replace.
We are just in the first inning of understanding the costs of EVs.
JLM
www.themusingsofthebigredcar.com
Right. My Canada friend said it cost him $9 to charge.....but their electricity is either heavily subsidized, or cheaper to generate.
I also would never buy an EV, lease only...
I've always thought Hybrids, like Prius is the way to go. Not sure why this was not pushed more
Prius does not offer enough opportunities for political graft.
Sort of like the covid vaccine. We can't have therapeutics, forced to get worthless vaccine
And the virtue signal for hybrids is only yellow, apparently.
It isn't pushed more because hybrids won't limit your mobility. I believe the end goal of those pushing EVs is to eliminate the traditional mobility of the average American. Beyond the cost, infernal government subsidies and charging issues there is the minor matter that both electrical generation capacity and grid distribution would have to be expanded dramatically (2x - 4x beyond the normal growth in electricity usage) to support EVs as a primary mode of transportation. That obviously isn't happening - the same folks pushing EVs are pushing wind, solar and unicorn farts as replacement for our current electricity generation and no one wants more high voltage lines around.
If I may, let's not also forget about increased insurance costs. They go through tires fast, because they are fast, not just heavy. Probably resulting in more collisions from lead foot types, which result in higher totaling of the vehicle stats, versus gas.
Also, I need to do more research, but it seems unlikely that 3rd party battery heaters would be allowed for Teslas? And, I guess, that the factory heaters can't handle Chicago'ish weather? Who the hell wants to deal with charging drama, battery drama, range drama, while dealing with extreme weather drama? Being a woke EV trail blazer is one hell of a chore!
The charge whack when turning it in undercharged is hilarious. EV's great for most of CA, but are not the future for most places.
-->"Hertz is getting out of the EV business. They will sell 20,000 EVs that they had purchased."
It seems Hert is selling only portion of their fleet. The catalyst is earnings.
From MotorTrend magazine:
Hertz is dumping 20,000 EVs, a portion of its roughly 50,000-EV fleet. Many of the EVs that Hertz owns are used for its rideshare rental program with companies like Uber. The instigating factor seems to have been repair costs for rideshare EVs, which were much higher than expected. This is not maintenance costs, which Hertz notes are lower than ICE vehicles, but rather collision repair costs. According to Hertz VP of Investor Relations, "collision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle." The difference is significant enough that it weighed significantly on Q3 earnings. https://www.motortrend.com/news/hertz-ev-fleet-sale-tesla-report/
(I've edited for conciseness.)
It seems a fleet owner has discovered that their collision damage experience results in EVs being "totaled" much more frequently than ICE vehicles. The story states the problem exists in the rideshare program, which implies Hert is exiting the rideshare business venture, not the EV rental market.
When the public rents a vehicle, drivers usually utilize their existing auto insurance coverage. I wonder how this collision damage experience (cost) will affect such underwriting coverage or costs--now or in the future?
Good last question.
We rent from Hertz 4 times a year, and they keep trying to get us to take an EV. So far, we’ve refused. Who needs the uncertainty?