Hertz Is Getting Rid Of 20,000 EVs

Happy Friday! It’s January 12, 2024, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, all in one place. Here are the important stories you need to know.

1st Gear: Hertz Is Selling A Third Of Its U.S. EV Fleet

Two days ago, we reported on Hertz’s plans to sell off 100 Tesla Model 3s due to their high repair costs. Many of you thought, “Oh, it’s only 100, that’s not indicative of a larger trend.” Well, here’s that trend you were looking for. From Automotive News:

Hertz Global Holdings Inc. plans to sell a third of its U.S. electric vehicle fleet and reinvest in gas-powered cars due to weak demand for the battery-powered options.

The sales of 20,000 EVs began last month and will continue over the course of 2024, the rental giant said Thursday in a regulatory filing. Hertz expects to record a non-cash charge in its fourth-quarter results of $245 million related to incremental net depreciation expense.

“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,” Hertz said. “The company expects this action to better balance supply against expected demand of EVs.”

I understand the lack of desire for EVs as vacation rentals. Vacations are a time to be free, and the last thing you want on you mind is a concern as boring and practical as EV range. Perhaps, once hotels get a bit better with EV charger installations, we’ll see that needle start to move.

2nd Gear: Toyota Is Still All-In On ICEs

Despite the early success of the Prius, Toyota has been a laggard in the full-bore EV transition. The company has been reluctant to throw in the towel on internal combustion, and it seems that reluctance isn’t going anywhere any time soon. From Automotive News:

CHIBA, Japan — Toyota Motor Corp. spent much of last year convincing the world it is serious about electric cars, outlining a bold plan for a cutting-edge EV lineup.

Now, Chairman Akio Toyoda says there is still plenty of life left in internal-combustion engines too, even in the EV age.

“There is still a role for engines as a practical means of achieving carbon neutrality,” Toyoda said Friday at the Tokyo Auto Salon. “So, let us refine engine technology.”

Toyoda said new takes on the old tech will help win the war against carbon emissions while also saving jobs and preserving the smell, sound and feel that died-in-the-wool car fans crave.

I’m curious as to how ICE engines will help achieve carbon neutrality, barring the invention of a mythic alternative fuel that’s fully renewable and creates no destructive emissions. I’m not going to hold my breath for that one.

3rd Gear: The FCC Is Looking Into Automaker Location Tracking

Last year, courts sided with an abusive husband who used Tesla’s location information to stalk his wife. Now, it seems the FCC has taken an interest in cases like these, and is demanding information from automakers about the location information their cars record, store, and share. From Automotive News:

The chairwoman of the U.S. Federal Communications Commission on Thursday wrote to nine large automakers, including Elon Musk’s Tesla, seeking more information about their policies involving internet-connected car technology and domestic abuse.

Cases of technology-enabled stalking involving cars are emerging as automakers add ever-more sophisticated features, such as location tracking and remote control of functions like locking doors or honking the horn.

FCC Chairwoman Jessica Rosenworcel on Thursday told Musk and the other CEOs that the federal agency is responsible for helping domestic abuse survivors with secure access to communications. Like a smartphone, she wrote, “having access to a car is a critical lifeline.”

Escaping a domestic abuse situation is difficult enough when your abuser can’t actively track your car in real time. With that barrier, getting out likely verges on the impossible. Hopefully, the FCC can help mitigate that.

4th Gear: Chinese Buyers Even Rejected Porsche In 2023

Everyone’s having a tough time in China right now. Buyers over there spent 2023 turning towards domestic brands, eschewing imports, and the move has been reflected in every automaker’s year-end numbers. Porsche, it seems, is no exception. From Reuters:

BERLIN, Jan 12 (Reuters) – Luxury carmaker Porsche (P911_p.DE) increased its deliveries by 3% in 2023, with 320,221 vehicles delivered worldwide, as growth in Europe and North America offset a challenging market in China, the company said on Friday.

…

In China, deliveries dropped by 15% in 2023, “mainly due to the ongoing challenging economic situation in the region,” the company said in a statement.

Does this mean we’ll see a Chinese brand compete directly with the 911? Perhaps not, but it’d sure be an interesting thing to see. I’m recalling the Datsun Z, and wondering when China will pull off a similar move.

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