Car rental company Hertz has announced a significant
investment in offering ‘green’ options for vehicle rentals with an order for
100,000 Tesla cars by the end of 2022 and the installation of new charging
infrastructure across the company’s global operations.
Beginning in early November 2021 and expanding throughout 2022,
customers will be able to rent a Tesla Model 3 in select cities in Europe as
well as Hertz airport and neighbourhood locations in major US markets.
To go along with the order, Hertz will install 3,000 Tesla
charging stations throughout the US and Europe.
With the order, Hertz said it will operate the largest fleet
of electric vehicles in North America and one of the largest in the world. Electric
vehicles will make up more than 20 per cent of the company’s global fleet
thanks to the order and will be supported by Level 2 and DC fast charging in 65
markets by the end of 2022 and more than 100 markets by the end of 2023.
Tesla’s stock price soared on news of the Hertz order.
Customers renting Teslas will have access to digitised
guidance to educate them about the vehicle and Hertz will soon implement an
expedited electric vehicle booking process through its mobile app.
Hertz said its investment is coming at a time when electric
vehicles are becoming more popular among consumers due to their improving
efficiency and environmental benefits coupled with rapidly expanding charging
networks in major markets.
“Electric vehicles are now mainstream, and we’ve only just
begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields
in a statement. “The new Hertz is going to lead the way as a mobility company,
starting with the largest EV rental fleet in North America and a commitment to
grow our EV fleet and provide the best rental and recharging experience for
leisure and business customers around the world.”
Hertz was one of the first US car rental companies to
introduce electric vehicles to its fleet in 2011 and said the technology is a
key focus of its future strategy. It is also the exclusive rental car member of
the Corporate Electric Vehicle Alliance, a consortium of companies focused on
accelerating the transition to electric vehicles.
The company has restructured parts of its business in recent months as it emerged from Chapter 11 bankruptcy protection proceedings, including the appointment of former Ford boss Fields as interim CEO.
The Tesla order comes as vehicle manufacturers around the
world are struggling to keep up with demand due to a shortage of semiconductor
chips, which Hertz said could affect its new fleet ambitions.