Sixt is currently phasing out Tesla Models in its fleet due to their declining resale values, according to a report by Focus Online.
“We would like to inform you that we are currently not acquiring any more Tesla vehicles. In addition, we are currently reducing the number of Tesla vehicles in our rental car fleet,” Focus Online quoted an email sent by Sixt to its customers.
According to Focus Online, Tesla models don’t have buy-back agreements that eliminate residual value risk.
Also, fluctuating prices of Tesla Models make it hard to forecast residual value.
Sixt doesn’t indicate the number of Tesla models it has but it’s reported to be well under 5,000 globally.
Sixt signed a multi-billion euro deal with Stellantis for purchase of 250,000 vehicles by 2026 that will be use in North America and Europe.
The first significant delivery volumes will occur in the first quarter of 2024 and will continue throughout the year.
Sixt said that the specific quanties, order compositions and delivery dates beyond 2024 can be flexibly agreed between the two companies as per fleet requirements and demand.
Deliveries will include several vehicle classes from SUVs to vans and trucks (including 7- and 9-seaters), as well as all drive types including BEVs.
The two companies will also explose potential cooperation in other areas such as Mobilisights and Stellantis’ data as a service (DaaS) business.
Assessment
The significant delivery volumes for 2024 could indicate that Sixt expects a strong demand in the current year given that they were cautious last year with regard to fleet purchasing in 2024.
Wow that’s an surprising announcement as Sixt worked heavily with German premium OEMs in the past. Signing such a large new agreement is certainly a risk as many of Stellantis brands are not premium brands and established partners should not like it.
Maybe Sixt got an particular good deal as Stellantis CEO Carlos Tavaris is hinting at the marketing effect that comes with exposing Stellantis newest technology to costumers via car rental.
“This partnership with SIXT enables current and potential Stellantis brand customers to immerse themselves in our newest offerings with the most advanced propulsion, vehicle connectivity and thoughtful comfort.“
I=5, SI=+2%
Buy, €133 : Analyst Yasmin Steile of Berenberg says its supply contract with Stellantis carried advantageous terms which reduces residual value risk in North America. She is also confident with Sixt’s current refinancing.
Sixt introduces Sixt Charge, a charging solution in Germany, Austria, France, Belgium and Luxembourg which has been developed in partnership with Elli, Volkswagen’s charging unit.
As a result, Sixt customers will have access to around 400,000 charge points in Elli’s charging network that are accessible without a physical card.
Sixt showcased it’s new “Car Gates” technology that takes between 200-300 photos of cars and uses AI to automatically analyse them and spot damages.
Sixt also talked about its strategy for the B2B Vans and Truck business which includes growing in Europe and U.S through acquisitions and partnerships, respectively.
I=6 Sixt North America is working on a counter-bypass experience and a new loyalty program in an effort to attract more corporate clients
In an interview with BTN, Sixt head of North America Tom Kennedy revealed that they are working on a counter-bypass experience and a new loyalty program that should help them to attract more corporate clients.
“We’re still very, very small, but we’ve been growing pretty well on a percentage basis. [Previously,] no corporate would entertain us as an alternative to Avis, Hertz or National because we just didn’t have the presence. Now that we’re in 51 airports this year and have a counter-bypass process, and we’ll be launching a revised loyalty program, which also is important in the U.S. market for those frequent travelers, I think we have all the components now to aggressively compete for that corporate frequent traveler,” he said.
Kennedy added that they are also looking to expand their “Proovstation”, a technology that scans for damages to other stations.
He also said that they are testing a new technology that checks for fuel levels, mileage and what time the car was returned so as to enhance customer trust.