Hertz plans to sell 20,000 electric vehicles from its rental fleet, citing repair costs as a factor in its decision, according to a filing with the U.S. Securities and Exchange Commission. The sale will involve about a third of the company’s electric fleet, which includes multiple models.

In the filing, the company said that while direct operating expenses per transaction day, excluding collision and damage, will be flat for the quarter and down for the year, expenses related to collision and damage, primarily associated with EVs, remained high in the most recent quarter, thereby supporting the company’s decision to initiate the material reduction in the EV fleet.

Hertz plans to use some of the money raised by selling off EVs to buy gas-powered vehicles. “The company expects this action to better balance supply against expected demand of EVs,” it said in the filing. Sales of the vehicles began in December and will continue through 2024, according to Hertz.

Image: Courtesy of Hertz