Hertz overhauls its fleet

A must in the face of market challenges

Faced with recent economic challenges highlighted by a net loss of USD 392 million in the first quarter of 2024, Hertz has taken drastic action by getting rid of a further 10,000 electric vehicles, bringing the total to 30,000. This costly decision aimed to alleviate the financial difficulties exacerbated by the price war (mainly initiated by Tesla) which has led to a massive fall in the residual values of electric vehicles. Against this backdrop, Hertz is considering a return to internal combustion cars in its US fleet, while maintaining its commitment to electrification in other markets.

Reflection on Hertz’s strategy

From the point of view of our sector, which specialises in certified engine reprogramming and the adoption of alternative technologies, Hertz’s strategy reveals a harsh truth that is often overlooked in the current debate on decarbonisation. By imposing a rigid timetable for the adoption of electric vehicles, Europe is turning a blind eye to the breadth of potential solutions for a successful energy transition. While it may seem a step backwards to some, Hertz’s decision to reintroduce internal combustion vehicles is proof of the need to remain flexible and adapt to market realities, while exploring all available technological avenues to reduce carbon emissions.

Outlook for the engine reprogramming sector

We believe that the future of mobility must be versatile and include a range of technologies to provide a balanced and effective response to environmental challenges. Hertz’s setback due to the financial and operational issues caused by the depreciation of electric vehicles highlights the risk of taking an excessively one-sided approach. It is imperative to recognise that different regions and industries may require different solutions which are tailored to their specific contexts.

Promoting innovation and diversification

As players in the engine reprogramming sector, we advocate a pragmatic and open approach which promotes the integration of technologies such as e-fuel and hydrogen to complement rather than replace electric vehicles. This will enable a smoother transition to a low-carbon future, while respecting the economic and operational realities of businesses and consumers.

In conclusion, Hertz’s commitment to maintaining part of its fleet electrified while reintroducing combustion vehicles is a necessary adaptation in an ever-changing mobility landscape. This should serve as a wake-up call for our industry to continue innovating and diversifying decarbonisation options, without limiting ourselves to a single technology or approach.