Car rental giant Sixt has agreed to buy 250,000 cars from Stellantis – the automaker behind Chrysler, Jeep and Dodge – just weeks after it severed ties with Tesla.
And just last week, Hertz said it would sell about 20,000 cars in its electric vehicle fleet, most of which were Tesla Model 3s.
Rental firms like Hertz blame low demand for EVs from customers who don’t want the hassle of finding charging stations on road trips and worry about range.
They have also alluded to recent depreciation of used EVs which can drastically impact the value of their fleets as they appear on balance sheets. Sixt and Hertz share prices are down 13 and 52 percent respectively over the last six months.
Rental company Sixt has agreed to buy 250,000 cars from Stellantis, the automaker behind Chrysler, Jeep and Dodge. Pictured are executives for the two companies
Stellantis owns a large range of brands, among them Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Lancia, Opel, Peugeot, Ram, Vauxhall and Maserati. Pictured are vehicles outside a Jeep dealership in Edmonton, Canada
Although the new Stellantis cars will include internal combustion, hybrid and all-electric vehicles, Sixt will be able to adjust its orders in response to demand.
The new cars will be added to rental fleets in North America and Europe by 2026, the two companies said in a joint announcement this week.
Sixt said the move would offer customers ‘the best choice for all their mobility needs’ while Stellantis noted specific models and delivery dates ‘can be flexibly agreed between both companies considering fleet requirements and demand’.
Stellantis owns a large range of brands, among them Alfa Romeo, Chrysler, Citroën, Dodge, Fiat, Jeep, Lancia, Opel, Peugeot, Ram, Vauxhall and Maserati.
‘We offer a vehicle that fits practically every need, price point, and lifestyle,’ said Carlos Tavares, CEO of Stellantis.
By comparison, Tesla has just four freely available models – the Model S, X, Y and 3 – and they are all fully electric.
In December, Sixt said it would phase out Teslas from its fleet, having previously cited costly depreciation on its inventory caused by rapid price cuts and expensive repairs.
‘We would like to inform you that we are currently not acquiring any more Tesla vehicles,’ Sixt told customers in an email seen by German publication Focus Online.
Tesla has four available models and they are all fully electric. Pictured are Tesla Model Y electric vehicles at Nangang port in Shanghai
Stellantis’ Fiat 500e will be the first EV it releases in the US, making its way onto roads at some point in 2024. Pictured is a Stellantis sign outside its headquarters in Auburn Hills, Michigan
‘In addition, we are currently reducing the number of Tesla vehicles in our rental car fleet,’ it went on.
Nonetheless, Sixt says it still plans to electrify at least 70 percent of its European fleet by the end of the decade.
Stellantis’ Fiat 500e will be the first EV it releases in the US, making its way onto roads at some point in 2024.
Last week, Hertz similarly revealed in a company filing that it would sell around 20,000 electric cars, or a third of its EV fleet, most of which were Teslas.
The proceeds from those sales will be reinvested in gas cars.
Hertz’s electric fleet is mostly Teslas but also features Chevrolet Bolts and Polestars.
The company has more than 550 Tesla Model 3s and 120 Model Ys listed on its Hertz Car Sales website, with mileage ranging from 10,000 to 100,000.
The selling of the EV fleet aligns with a broader trend in the US auto market in which demand for electric cars appears to have fallen.