Car rental firm Hertz isn’t totally sold on the future of electric cars. In fact, the firm announced Thursday it was selling nearly 20,000 of its EVs.
Hertz wants to replace them with gas-powered cars. Here’s why. It costs too much to repair EVs involved in collisions and left damaged. Hertz had originally intended to convert 25% of its rental fleet to electric by the end of this year.
As Reuters pointed out, the decision “underscores the bumpy road EVs have hit as their sales growth slows, causing carmakers like General Motors (GM.N) and Ford (F.N) to scale back production plans.”
One analyst told Reuters the Hertz decision is yet another sign that expectations for electric vehicles needs to be “reset downward” and that there are “hidden costs to EV ownership.”
In a filing with the SEC, Hertz stated, “Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter.”
At the same time, the Biden administration announced plans to pour $623 million in infrastructure money to boost the nation’s EV charging neetwork. The grants will go to 22 states, including $100 million to the state of Texas.
“This funding will help ensure that EV chargers are accessible, reliable, and convenient for American drivers, while creating jobs in charger manufacturing, installation, and maintenance for American workers,” said Transportation Secretary Pete Buttegieg in a statement.
