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Hertz Orders 100,000 Tesla Vehicles

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1 hour ago, CKNSLS said:

If Hertz bought electric Mustangs/F-150 Lightnings the tone on this thread would be much different.......


Wrong.  The same issues would apply to Ford BEVs.  

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2 hours ago, CKNSLS said:

If Hertz bought electric Mustangs/F-150 Lightnings the tone on this thread would be much different.......

 

If in the future Ford is able to combine high value fleet services and software with firm retail pricing for Mustang Mach-E and F-150 Lightnings sold to fleet customers like Hertz (no price concessions), everyone should be happy.

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2 hours ago, CKNSLS said:

If Hertz bought electric Mustangs/F-150 Lightnings the tone on this thread would be much different.......

 

Eh, for me it's be along the lines of what's here - it's great for Tesla to have 100k locked in sales (as it would be for Ford in your scenario), but I still think it's a big leap for a rental company for BEVs.  Obviously mandates are beginning to push everyone toward BEVs, and unlike his tenure at Ford, Fields is seemingly trying to get out in front of it instead of being caught with the pants down......but I agree with the sentiments that when people are renting cars, they want familiarity, and for most people BEVs aren't it right now...mainly on the charging aspect (BEVs in general) and interface (for Tesla specifically).  Long term there'll eventually be a industry (rental) wide transition.  And I'm sure it's not 100k at once, but phased in over x years.

 

One very interesting component of this deal that could affect ALL automakers if true - little to no discount on pricing for the 3's.  Automakers may push for the same little to no discounts for other products when selling to rentals, which helps automaker profitability, meaning rental fleet sales won't be as bad.  That said, consumers will likely get hit on the other end because of that via higher rental costs.

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14 minutes ago, rmc523 said:

One very interesting component of this deal that could affect ALL automakers if true - little to no discount on pricing for the 3's.  Automakers may push for the same little to no discounts for other products when selling to rentals, which helps automaker profitability, meaning rental fleet sales won't be as bad.

 

Yes sir, that is a desperately needed change for all automakers. When passenger car and light truck fleet sales eventually resume following its almost total collapse last year a result of Covid-19 pandemic and continuing this year due to the microchip shortage, I'm confident that all automakers will emphasize sales quality and not just sales quantity. 

 

What Tesla is doing for the Model 3 sold to Hertz (full retail pricing, no fleet concessions) should be a good example for the incumbent automakers as those companies transition to 100% electric vehicles.

 

 

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40 minutes ago, rperez817 said:

 

When passenger car and light truck fleet sales eventually resume following its almost total collapse last year a result of Covid-19 pandemic and continuing this year due to the microchip shortage, I'm confident that all automakers will emphasize sales quality and not just sales quantity. 

 

LOL. You aren't old enough to have seen this industry through several up and down business cycles. Discounts will come back as certainly as the sun rises, it's only a question of when and by how much.

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13 minutes ago, Harley Lover said:

 

LOL. You aren't old enough to have seen this industry through several up and down business cycles. Discounts will come back as certainly as the sun rises, it's only a question of when and by how much.

 

Good points Harley Lover sir. I've bought cars since the 1990s, all but 2 of them used. That's the extent of what I've seen with automotive industry up and down business cycles.

 

However, the electric vehicle revolution going on right now in the automotive industry combined with disruptions caused by the Covid-19 pandemic and the microchip shortage are once in a lifetime events. That makes it more likely the whole industry will completely dump old, destructive ways of doing business such as fleet dumping for good.

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I agree with doing away with fleet dumping but there is no way they will stick with MSRP.  All it will take is a competitor to be too close in sales and money with be thrown on the hood.  Rebates to clear out old inventory as new MY vehicles start production.

 

Heck I just received a private offer of $2,500 on a new SD or Expedition in the mail.

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On 10/25/2021 at 9:41 AM, rperez817 said:

Plus Tom Brady will be in some Hertz advertisements regarding its BEV fleet. 😀

 

Reports from Bloomberg indicate that Hertz Corporation is paying close to full sticker price for these 100,000 Teslas. This could be good news for other automakers both startup and incumbent, as fleet sales transition from "dumping" at low or no profit to a more sustainable and profitable business model. Hertz Invests in Largest Electric Vehicle Rental Fleet and Partners with Seven-Time Super Bowl Champion Tom Brady to Headline New Campaign - Oct 25, 2021

 

ElectricVehicle_1634924028979-HR.jpg

Looks like they aren't going to have #12 running through the airport like a certain #32 did...

As If either one would rent a car.

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Maybe it's been covered....but as a non-EV owner, what is going to happen when we need a rental?  We have an Aviator and a Ram 3500 CC 4x4 - when then wife was rear ended a while back, I absolutely rejected the sedan they tried to put us in.  But more importantly - we aren't set up in ANY fashion to recharge a vehicle here.....and the vast majority of the country is in the same boat.  I have a feeling some of the other rental fleets are already making marketing plans to point that out.

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4 hours ago, rperez817 said:

 

Yes sir, that is a desperately needed change for all automakers. When passenger car and light truck fleet sales eventually resume following its almost total collapse last year a result of Covid-19 pandemic and continuing this year due to the microchip shortage, I'm confident that all automakers will emphasize sales quality and not just sales quantity. 

 

What Tesla is doing for the Model 3 sold to Hertz (full retail pricing, no fleet concessions) should be a good example for the incumbent automakers as those companies transition to 100% electric vehicles.

 

 

It will be interesting to see what they will charge vs an Escape or Prius. Will the customer be penalized for returning the 3 less than fully charged?

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51 minutes ago, Chrisgb said:

It will be interesting to see what they will charge vs an Escape or Prius. Will the customer be penalized for returning the 3 less than fully charged?

Hertz is expecting them to come back with a 10% state of charge after leaving with an 80% charge.  So not an issue.  But, they didn’t say how much you would pay for that 70% charge you are allowed.  No different than the prepay a tank of gas.  Bottom line on whether it is successful or not will come down to pricing.  Plenty of business travelers that don’t put many miles on during a short trip.  Just a matter of getting the pricing right for the corporate expense report.  20% of the fleet being electric is a pretty big gamble for a company coming out of bankruptcy, but maybe that’s all they could get.  Everyone has cut the low profit vehicle production with limited supply of parts.

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Hertz announced today that it will order up to 175,000 BEV from General Motors over the next 5 years (Chevy, Buick, GMC, Cadillac, and Brightdrop brands). It's not clear if Hertz will pay full retail price for these GM vehicles like it is doing with Tesla. Hertz and GM Plan Major EV Expansion | Hertz Global Holdings, Inc.

 

ESTERO, Fla. and DETROIT, Sept. 20, 2022 /PRNewswire/ -- Hertz (NASDAQ: HTZ) and General Motors Co. (NYSE: GM) today announced an agreement in which Hertz plans to order up to 175,000 Chevrolet, Buick, GMC, Cadillac and BrightDrop EVs over the next five years. Hertz and GM believe this plan is the largest expansion of EVs among fleet customers and the broadest because it spans a wide range of vehicle categories and price points — from compact and midsize SUVs to pickups, luxury vehicles and more.

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1 hour ago, rperez817 said:

Hertz announced today that it will order up to 175,000 BEV from General Motors over the next 5 years (Chevy, Buick, GMC, Cadillac, and Brightdrop brands). It's not clear if Hertz will pay full retail price for these GM vehicles like it is doing with Tesla. Hertz and GM Plan Major EV Expansion | Hertz Global Holdings, Inc.

 

 

 

There's always Avis and Enterprise for Ford.

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