Ayvens, the biggest multibrand leasing firm, already has received checks in recent weeks to make up for slumping prices, according to CEO Tim Albertsen. Leasing companies are demanding concessions from EV makers, including agreements that manufacturers will buy back vehicles, to protect against further erosion in the $1.2 trillion second-hand car market.
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as weakening demand for new battery-powered cars prompted Tesla to slash sticker prices, forcing others to follow suit. The moves are reverberating through leasing firms, such as Europe-focused Societe Generale Ayvens and BNP Paribas Arval, which serve as middlemen in the corporate car market that accounts for roughly 60 percent of sales in the region.
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But major corporate customers have started to pull back. SAP this month said it will stop offering Teslas to employees because fluctuating prices are complicating planning and risk management. The move added to pressure after Hertz in January decided to offload 20,000 EVs from its fleet. Europe’s biggest rental company, Sixt, also said in December would drop Teslas.
All EV manufacturers are now offering buyback guarantees to leasing companies to keep selling new battery cars, said Ursula Weigl, a partner at McKinsey consultancy. While this helps shift risk into the future, carmakers remain on the hook to find used-car buyers at a decent price, or risk writedowns.