Hertz Suffers $588M Loss, EV Startups Struggle as Nardelli Criticizes Administration Push

Former Chrysler CEO Bob Nardelli recently discussed the administration’s push for electric vehicles (EVs), arguing that many of the startups in this space are failing. Meanwhile, Hertz Global Holdings reported a loss of $588 million last quarter due to continued expenses associated with its failed investment in an EV fleet. The rental car company announced losses totaling over half a billion dollars for Q2 2023 – more than analysts had anticipated. Shares fell by over 24% as a result, but they recovered somewhat on Friday. Hertz initially invested heavily in acquiring Teslas to build its EV fleet back in 2021; however, it subsequently changed course due to low demand for electric vehicles from customers early this year and pledged to unload tens of thousands of them instead while returning to gas-powered cars. The company now plans to sell an additional 10,000 EVs by the end of the year, bringing its total planned sales up to 30,000 for 2023. Higher repair costs also contributed significantly to overall fleet maintenance expenses during this quarter. Hertz CEO Gil West commented that “fleet and direct operating costs weighed on this quarter’s performance.”