Hertz is stepping up its game when it comes to electric vehicles (EVs). Already, its annual profits have soared by 12%, as the rental car giant rapidly transitions to a more economical and greener fleet.
EV vehicles feature fewer moving parts than gas-powered cars, so there are fewer components that could require costly replacements. Plus, with less repair time needed, EVs can find themselves more often on the road and making money as rentals.
“We focused on operational excellence and fleet optimization to produce financial results that facilitated investment in our strategic priorities, like electrification, while enhancing returns to our shareholders and being in the service of our customers,” Scherr said in the earnings call.
During a third-quarter earnings call, Stephen Scherr, CEO of Hertz, reported $2.5 billion in revenue and announced a deal with GM for 175,000 EVs, as per The Driven.
The revenue figure can be attributed to corporate demand for Hertz rentals returning close to pre-pandemic levels and the discovery that EVs cost around 50-60% less to maintain than gasoline-powered cars.
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The agreement with GM puts Hertz on course to meet their goal of electrifying their fleets. This deal marks the greatest amount of EVs ever purchased by a fleet customer, further reinforcing the prevalent trend towards electric vehicles. Hertz' partnership with Polestar earlier in the year saw them obtain 65,000 EVs, a testament to their commitment to electrify their fleets.
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