Auto Rental News
MenuMENU
SearchSEARCH

Hertz Records Q4 Losses Amid EV Fleet Fallout

The declining resale values of electric rental fleet vehicles and consumer reluctance is generating financial headwinds for the global car rental company.

February 7, 2024
Hertz Records Q4 Losses Amid EV Fleet Fallout

Hertz attributes recent quarterly losses to the sell off of electric rental vehicles. It is also shelving the purchase of Polestar EV models, like the Polestar model 2 pictured here.

Photo: Martin Romjue / Bobit

2 min to read


Hertz Global Holdings, Inc. reported results on Feb. 6 for its fourth quarter and full year 2023 that show a quarterly net loss of $348 million on revenue of $2.2 billion, resulting in a negative 16% margin, or $1.14 loss per diluted share.

The adjusted net loss for Q4 was of $418 million, or $1.36 loss per diluted share, and an adjusted corporate EBITDA of negative $382 million, a negative 17% margin, including recognition of $245 million of net depreciation expense related to the previously announced sale of electric vehicles.

Ad Loading...

The losses come as Hertz holds off on a planned bulk purchase of Polestar electric vehicles, reported on Feb. 5.

Hertz Chairman and CEO Stephen Scherr partially attributed the losses to its electric vehicle fleet, which it previously announced it would downsize by 20,000 vehicles or a third of its EV fleet.

"We continued to face headwinds related to our electric vehicle fleet and other costs throughout the quarter," Scherr said in a news release. "We have taken steps to address those challenges and heading into 2024, we are confident that our planned reduction in EVs and cost base, along with the ongoing execution of our enhanced profitability plan, will enable us to regain our operational cadence and improve our financial performance with increasing effect into 2025."

Strong Q4 2023 revenue per transaction day of $58.09 reflected continued price discipline and a moderating trend relative to prior quarterly comparisons, Hertz reported. It prioritized rate over usage, purposely forgoing lower margin business. 

Depreciation per unit per month of $498 reflected the impact of the write down of electric vehicles held for sale to their fair value and a decline in residual values, as well as a modestly higher than expected fleet.

Ad Loading...

Fleet interest expense increased to $91 per unit per month in the fourth quarter, up from $55 per unit per month in Q4 of 2022. The increase year over year was mostly a reflection of rising interest rates.

Direct operating expense on a per transaction day basis, exclusive of litigation settlements in Q4 2022, increased year over year, mostly due to elevated net collision and damage expenses.

For fiscal year 2023, Hertz reported:

  • Revenue of $9.4 billion

  • Net income of $616 million, a 7% margin, or $1.39 per diluted share

  • Adjusted net income of $172 million, or $0.53 per diluted share

  • Adjusted corporate EBITDA of $561 million, a 6% margin, including recognition of $245 million of net depreciation expense related to the previously announced sale of EVs

  • Operating cash flow of $2.5 billion

  • Adjusted operating cash flow of $44 million and adjusted free cash outflow of $321 million

  • Corporate liquidity of $2 billion at Dec. 31, 2023, including $764 million in unrestricted cash

  • Company repurchased 19.4 million shares of common stock for $291 million

More Rental Operations

An airplane parked at a gate next to large headline and bullet points about study highlights.

U.S. Business Travel Drives $623 Billion+ in Economic Impact as Spending Reaches $538 Billion

The data also underscores the industry’s strong multiplier effect across the U.S. economy, revealing that each dollar invested in business travel in 2024 generated $1.16 in GDP.

Read More →
Green and black bar graphs show May 2025 v. 2026 fleet vehicle sales into commercial, rental, and government fleet sectors.
Fleet Acquisitionby Martin RomjueJune 3, 2026

Rental Fleet Sales Skating Just Above 2025 Levels

The U.S. economy's continued growth and positive business investment are creating a favorable environment for fleet vehicle demand.

Read More →
Interviewer Martin Romjue and guest Ryan Kerzner on both sides of a title page with large lettering.
Rental Operationsby Martin RomjueJune 3, 2026

Grow Your Rental Business Beyond Cars

Rental fleet operations are facing numerous evolving challenges and opportunities from AI technology to rate and revenue management, to customer service and business growth.

Read More →
Ad Loading...
An AI-imaging tunnel instantly scans a car for damages at Wenn's location in Lithuania.
Rental OperationsJune 2, 2026

Using AI to Create Clarity, Not Conflict, in Rental Car Damage

Rental companies still need people, policy, judgment, and thoughtful implementation, with operators remaining in control of the customer experience.

Read More →
Close up of a high-tech vehicle console with a remote key.
Rental OperationsJune 1, 2026

Get Ready To Roll: No Stopping Self-Driving Rental Cars

The autonomous mobility technology revolution will move at its own pace, but sooner rather than later.

Read More →
Two execs hold up a sign with Southwest and CarTrawler logos

Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform

The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.

Read More →
Ad Loading...
Speaker John Healy on stage with a podium, screen, and red curtains in the background.
Rental Operationsby Martin RomjueMay 27, 2026

Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry

A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.

Read More →
Award winner on stage with presenters in front of yellow curtain.
Rental Operationsby Martin RomjueMay 27, 2026

Government Affairs Executive Wins Leading Rental Car Industry Award

Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.

Read More →
The rental car team at the Green Motion franchise office near the Maputo International Airport in Mozambique.

Green Motion Expands Its African Presence with Mozambique Launch

This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.

Read More →
Ad Loading...
Photos of CEOs Colm Brady and Francois Kruger on a blue background and above a headline.
Telematicsby News/Media ReleaseMay 22, 2026

RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech

Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.

Read More →
Ad Loading...