Learning from Hertz's EV challenges: Building a winning strategy for your electric fleet

As the world steadily shifts towards electric vehicles, companies are grappling with the complexities of this transition. Recently, Hertz's decision to scale back its electric fleet and return to traditional gas-powered vehicles has reignited discussions about the challenges of fleet electrification.

This article delves into the key issues faced by Hertz and highlights the importance of a well-planned strategy for a successful transition to electric vehicles, and we’ll also explain how Volteum's Electric Fleet Planner can be a vital tool in building and executing this strategy.

Hertz is returning to traditional vehicles - but why?

Hertz, a well-known rental car company, is reportedly shifting its focus back towards traditional gas-powered vehicles (ICEs), following challenges with its electric vehicle (EV) fleet. Here's a summary of the key points from InsideEVs’ article covering the news:

1. Fleet rebalancing: Hertz plans to sell off a third of its EV fleet, amounting to approximately 20,000 cars, and replace them with ICE models. This move is part of a "rebalancing" effort in response to operational challenges faced with their EV rentals.
2. Reasons for scaling back on EVs: Hertz cited high repair costs and reduced residual values of EVs as primary reasons for scaling back its EV operations. The company had previously announced in October that it would be reducing its focus on EVs.
3. Specific challenges with Teslas: A significant portion (80%) of Hertz's EV fleet consists of Teslas. Hertz mentioned high damage and collision costs for these rentals, highlighting Tesla's higher-than-average insurance costs and lengthy, expensive repair times.
4. Impact of Tesla’s price cuts: Tesla’s price reductions and the reintroduction of the $7,500 new EV tax credit have lowered the resale value of Tesla models, impacting Hertz's return on investment.
5. Comparison with other rental companies: Other rental companies like Sixt are also shifting focus away from Tesla for similar reasons but still plan to electrify their fleets. Sixt aims to electrify 90% of its fleet.
6. Customer experience issues: Hertz and other rental companies have struggled with customer service regarding EV rentals. This includes issues like providing insufficient charging information, lack of explanation on EV operation, and vehicles not being fully charged at the time of rental.
7. Potential benefits of fleet reduction: The reduction in Hertz's EV fleet might lead to an influx of used EVs in the market, potentially offering more affordable options for consumers in 2024.

According to InsideEVs, while Hertz's decision to scale back its EV fleet might be seen as a setback for EV adoption, the issues faced seem more specific to the company's operational challenges and Tesla-specific factors, rather than a broader problem with EV technology. Still, some questions linger: could this problem have been prevented, and if so, how?

Source: autonavigator.hu

The importance of a well-planned fleet electrification strategy

The answer lies in the importance of a well-planned fleet electrification strategy. This strategy is not merely about switching from gas-powered vehicles to electric ones; it encompasses several vital elements, each of which plays a key role in ensuring a smooth transition and operation. These include:

1. Managing operational costs: An effective electrification strategy can help control operational costs that may skyrocket if not properly managed. These costs cover vehicle acquisition, maintenance, and energy consumption.
2. Ensuring seamless customer service and proper driver training: The transition to electric vehicles brings about changes in customer interactions, queries, and complaints. Additionally, drivers need to be adequately trained to handle these new vehicles. A well-rounded strategy addresses these points, ensuring a smooth customer service experience and proper driver training.
3. Maintaining the residual value of electric vehicles: Given the rapid advancement of technology in the EV industry, electric vehicles can become obsolete faster than traditional vehicles. However, a well-thought-out strategy can guide you in choosing the right vehicles and maintaining them correctly, thereby preserving their value over time.

In summary, a robust fleet electrification strategy could have potentially averted the issues encountered by Hertz, highlighting its vital role in the successful adoption and operation of electric vehicles. However, it's worth noting that the future is unpredictable, and elements like Tesla's unexpected price cuts are hard to foresee. While such external factors may remain beyond control, a well-crafted strategy could indeed address and resolve a multitude of other potential challenges in the transition to electric vehicles.

Building a strong electrification strategy with Volteum’s Electric Fleet Planner

Recognizing the range of challenges companies face in transitioning to electric vehicles, Volteum provides comprehensive solutions designed to address them head-on. Transitioning to electric vehicles requires extensive planning to ensure that your fleet’s operations remain efficient and cost-effective. Volteum’s Electric Fleet Planner is designed to make this process easy to navigate and quick to accomplish.

The Electric Fleet Planner uses data analysis and financial modeling to provide customized recommendations for fleet electrification, catering to each company's specific needs. It identifies suitable vehicles for electrification and provides personalized guidance on selecting the optimal EV models, choosing the most suitable chargers, and understanding the financial and sustainability benefits of transitioning to electric vehicles.

Empowered by the market’s most comprehensive EV Database and an EV Simulation feature that offers accurate and reliable insights into how EVs perform on different routes, the Planner ensures confident, reliable and informed decisions from day one. Furthermore, recognizing that transitioning to an entirely electric fleet can be a gradual process, Volteum also offers solutions for managing mixed fleets by optimizing operations while guiding the electrification process. All in all, Volteum stands as a strategic partner, helping to create a comprehensive electrification strategy that drives towards efficiency, sustainability, and future-proof progress.

Moving forward: Ensuring a sustainable transition to electric fleets

In conclusion, the journey towards full-scale fleet electrification is complex and filled with potential pitfalls, as evidenced by Hertz's experiences. However, these challenges should not deter us from embracing the future of mobility. With a well-planned strategy and tools like Volteum's Electric Fleet Planner, it's entirely possible to navigate the transition successfully. As we continue to drive towards a sustainable future, it's crucial to remember that the road to electrification isn't a solo journey - it's a collaborative effort where strategic planning, technological innovation, and resilient adaptation work hand in hand.