The Rising Influence of Rising Affluence

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Hertz to sell 20,000 electric vehicles, take $245M charge

Hertz said it has made the strategic decision to sell approximately 20,000 electric vehicles from its U.S. fleet, or about one-third of the global EV fleet. These vehicle dispositions, which were initiated in December 2023 and are expected to take place in an orderly fashion over the course of 2024, will cover multiple makes and models.

The company expects to reinvest a portion of the proceeds from the sale of EVs into the purchase of internal combustion engine vehicles to meet customer demand. The company's decision to reduce its EV fleet will result in the recognition, during Q4, of approximately $245M of incremental net depreciation expense related to the sale. The non-cash charge represents the write down of the EVs' carrying values as of December 31, 2023 to their fair values, less related expenses associated with the disposition of the vehicles. This charge is in addition to the depreciation expense that the company will report for Q4 in the ordinary course with respect to the remainder of its fleet. Hertz does not expect this EV fleet reduction and the corresponding addition of ICE vehicles to have a material impact on its asset-backed securitization facilities.

Read more at:
https://thefly.com/n.php?id=3843022