The Car Rental Company Sixt Faces a Strategic Adjustment of Its Fleet. As Co-CEO Alexander Sixt explained in an interview with Handelsblatt, the company will reduce the number of its electric cars. Despite an initially positive reception of e-mobility, the demand fell short of expectations. In the year 2023, Sixt's fleet consisted of 6 percent electric cars.
This decision comes at a time when the residual values of electric vehicles have also fallen sharply. "Between the summer of 2022 and March 2024, the residual values for battery electric vehicles in Germany have dropped by an average of around 40 percent," according to Sixt. Such a loss in value is unprecedented and has significantly contributed to the financial challenges of the company, especially since a loss for the first quarter was announced. The official business figures for this quarter are to be published on May 7th.
Moreover, Sixt Calls for Reconsideration of German Industrial Policy Regarding Electromobility. He emphasizes that consistent support measures are necessary if Germany aims for the end of internal combustion engines, similar to the incentive systems implemented in other parts of the world. This strategic realignment reflects the complex challenges the automotive industry faces in transitioning to more sustainable propulsion technologies.
