Hertz has reported a 12% increase in yearly profits following investments in electric vehicles (EVs). According to a report by the Cooldown, Hertz has sought to transition to EVs in order to optimize its fleet and reduce costs.
One of the main contributing factors to this improvement is the lower operational costs associated with EVs, which have less downtime and are cheaper to run over the long-term.
“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. And so I think, the open of that valve if you will, the supply of EVs to add to what we’re doing around Tesla and Polestar, I think will be a positive, both in terms of customer experience and in the overall economic picture around depreciation, for our products set” said Hertz CEO Stephen Scherr
Hertz currently operates a diverse electric fleet and has partnerships with Tesla, Polestar, and General Motors to provide fleet vehicles.
As travel returns to pre-pandemic levels, Hertz is positioning itself as a leader among rental companies with its commitment to electrification.