Hertz Israel Memos Warn of Frequent Breakdowns in Chery Cars

Internal communications from Hertz Israel, a major car leasing and rental company, reveal significant concerns about the reliability and maintenance of Chery vehicles. The memos, obtained by the business newspaper "Calcalist," describe Chery cars as being "full of malfunctions" and requiring lengthy waits in repair shops, sometimes for months. One internal message noted that the price for Chery vehicles was high due to these issues and the extended repair times.

These internal criticisms follow similar complaints from another Israeli leasing company, Budget Israel, which also reported problems with Chery vehicle availability, repair times, and issue resolution. The emergence of these complaints from large leasing firms, which have close ties with car importers, is considered unusual. Chery, a Chinese automaker, has become a dominant player in the Israeli market, partly due to government incentives for plug-in hybrid vehicles, a segment where Chinese manufacturers excel.

However, the technical complexity of these vehicles, particularly plug-in hybrids and EREV (Extended Range Electric Vehicle) configurations where the gasoline engine acts as a generator, often necessitates repairs at the importer's specialized service centers rather than the leasing companies' own facilities. This has led to challenges for importers in providing adequate and timely service.

Hertz Israel, part of the Meir Company which also imports Honda and Volvo, operates a fleet of tens of thousands of vehicles and has purchased thousands of Chery cars from its importer, Pricarby. Despite Pricarby having its own leasing company, Hertz Israel has continued to procure Chery vehicles.

In response to the reports, Hertz Israel stated that it manages a fleet of approximately 50,000 vehicles and works collaboratively with all importers, having purchased over 1,000 Chery vehicles this year. They emphasized that their operational recommendations and pricing are based solely on professional and economic considerations. Pricarby, the Chery importer, acknowledged growth challenges due to the brand's success, with nearly 80,000 vehicles sold in under four years. They asserted that immediate steps, including increased staffing and new service centers, have already shortened wait times and that they are investing resources to maintain high service standards.