Hertz hits pause on Polestar electric vehicles

US car rental giant Hertz is continuing its plans to revert back to a petrol-powered fleet with a decision to halt its purchase of Polestar electric vehicles.

Hertz previously announced its plans to buy 65,000 electric cars from the car maker, however – according to a Financial Times report – Polestar CEO Thomas Ingenlath was informed of the oncoming buying freeze by Hertz CEO Stephen Scherr late last year.

According to the report,Polestar agreed to the deal on the condition Hertz would not offload its current stock of 13,000 Polestar vehicles for a quick turnaround at a cheaper price.

Drive has contacted Hertz Australia for comment and will update the story with its response.

This comes as Hertz started to sell 20,000 Tesla electric vehicles from its fleet in January 2024 – with the car rental giant previously citing expensive repair costs coupled with a lower depreciation value as the main reasons behind the change back to petrol-powered cars.

“Collision and damage repairs on an [electric vehicle] can often run about twice that associated with a comparable combustion engine,” Mr Scherr previously said in a media statement.

Multiple overseas reports claimed the rental company is expecting a $US245 million ($AU365.7 million) loss on selling its Tesla stock – with the eventual Polestar offload expected to contribute towards its ongoing financial loss.