Rental giant Sixt doubles down on Jeep, Peugeot parent after ditching Tesla

After Sixt announced it’s phasing out Tesla electric vehicles (EVs) from its rental car fleet, the company has confirmed it has signed a “multi-billion euro agreement” with Stellantis.

The global rental car giant will buy up to 250,000 Stellantis vehicles for its North American and European fleets. Deliveries will start in this quarter and continue for the next three years.

Sixt will buy “city to SUVs to vans and trucks (including seven- and nine-seaters)” from Stellantis brands. These include Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Opel, Peugeot, Ram, Vauxhall, and Maserati.

The Stellantis vehicles bought by Sixt will also include a “full range of propulsion types”, including battery electric vehicles (BEVs).

Sixt still plans to electrify as much as 90 per cent of its European rental fleet by the end of the decade.

“We are very much looking forward to welcoming a large number of exciting vehicles of iconic Stellantis brands to our fleet,” said Sixt co-CEO Konstantin Sixt.

“This agreement with a progressive, full-range partner underscores our promise to provide our customers with the best choice for all their mobility needs.

“It enables us to accelerate our growth strategy ‘EXPECT BETTER’, after already achieving global revenue growth of almost 20 percent in the first nine months of 2023.

“This ambition applies to European countries, but of course also to the U.S., the largest rental market in the world and the most important growth market for our company.”

At this stage Sixt hasn’t announced if it will introduce any Stellantis vehicles to its Australian rental fleet.

Bloomberg reported in early December 2023 the car rental company is phasing out Teslas from its fleet, citing poor resale values.

In an email to customers seen by the news outlet, Sixt claimed these resale value issues are being compounded by higher repair costs for EVs compared to combustion-powered vehicles.

The letter says there are “significantly higher holding costs for Tesla vehicles”, and that the company won’t be purchasing any additional Tesla vehicles.

Rival car rental company Hertz is also selling off approximately 20,000 EVs in the US for similar reasons, and also announced it’s rolling back its ambitious electric car plans for the United States.

Despite phasing out Tesla EVs, Sixt recently agreed to buy around 100,000 BYD vehicles by 2028.

It’ll begin its BYD rollout in Germany, France, the Netherlands and the UK, with vehicles appearing on fleet this year.

Sixt also recently agreed to buy at least 500 BYD Atto 3s for its Australian fleet, with aims of operating the largest and most wide-ranging EV fleet for hire Down Under.

The German company’s Australian operation opened in December 2021, run on a franchisee basis by the NRMA –which has its own charging network and furthermore owns a stake in Chargefox alongside its fellow state motoring clubs.

Sixt says it plans to convert half its 16,000-strong nationwide rental fleet to electric “in the coming years”.

MORE: Why Sixt is dropping Tesla electric cars from its rental fleet