Quote:
Originally Posted by LogicalApex
To be fair, the problem for Hertz is primarily a Tesla problem. Tesla doesn’t have a very good parts operation nor do they have a good repair operation either. So Hertz wasn’t given fleet discount on repair parts nor did they have an easy ability to order the parts from Tesla to do their own repairs.
Another issue they had is Tesla kept dropping the price of their cars aggressively which forced Hertz to mark down the value of its cars on its books based on GAAP rules. Forcing them to have heavier than anticipated losses.
Established brands who have along automotive experience like BMW wouldn’t cause them the same problems with their EVs. BMW EVs aren’t as headline grabbing as Tesla though…
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BMW's existing dealer network will help them, but sales have a way to go to catch Tesla. Tesla having to generate a repair station network from scratch will not fly with traditional buyers. Techies and Greenies who had to have EV will tolerate subpar service, regular buyers comparing to ICE experience will not.