White House praised Hertz for 'accelerating the EV transition' months before company began dumping EVs
Hertz calls mass sell-off of electric vehicle inventory a 'strategic decision'
Electric vehicle demand falls short of manufacturers’ expectations
FOX News' Bret Baier reports on the demand for electric vehicles and why some companies are readjusting their targets and slowing down production on 'Special Report.'
The White House praised Hertz, one of the four largest car rental companies in the world, for its efforts to "substantially increase" electric vehicle (EV) rentals months before the company announced it would largely abandon EVs over increasing costs.
On Thursday, Hertz Global Holdings announced in financial filings that it made the "strategic decision" to sell approximately 20,000 EVs from its U.S. fleet, or about one-third of its global EV fleet. According to the documents filed with the Securities and Exchange Commission, Hertz's sales of EVs began in December and will continue in an orderly fashion throughout 2024, and a portion of the proceeds from those transactions will be invested in new gas-powered cars.
"The Company expects this action to better balance supply against expected demand of EVs," the company stated, before pointing to the high costs of managing EVs. "This will position the Company to eliminate a disproportionate number of lower margin rentals and reduce damage expense associated with EVs. The Company will continue to execute its strategy around EV mobility and offer customers a wide selection of vehicles."
"Going forward, the Company will continue to actively manage the total size of its EV fleet, as well as the allocation of EVs among customer segments, including leisure, corporate, government and rideshare," it continued.
MORE THAN 150 REPUBLICANS UNITE TO CONDEMN BIDEN'S 'ILL-CONSIDERED' ELECTRIC VEHICLE PUSH
Two electric Chevrolet Bolts are parked in front of a Hertz rental location in Michigan. (General Motors / Fox News)
However, prior to the announcement Thursday, the White House had repeatedly lauded Hertz for the company's public commitments to transition its fleet to one more reliant on EVs.
For example, in March 2023, the White House highlighted Hertz's efforts and said the company was playing a role in "accelerating the EV transition." The fact sheet stated that Hertz, in addition to other private sector and public sector entities, would help ensure President Biden's goal of having 50% of total vehicle sales be electric by 2030.
OFFICIAL LEADING BIDEN'S EV PUSH STEPS DOWN IN SURPRISE MOVE AFTER HEAVY GOP OPPOSITION
"This morning, [Hertz] was recognized by The White House for our efforts to expand access to electric vehicles across the country," Hertz said on X after the White House announcement."Demand for EV rentals is growing and we’re here to help our customers electrify their travels."
And last month, the White House said Hertz would help to guarantee federal employees were able to rent EVs when traveling. The White House guidance released at the time requires federal government employees to prioritize using EVs, trains and public transportation options when conducting official business.
President Biden set a goal of ensuring 50% of car purchases are electric by 2030. His administration has pursued aggressive regulations that target future gas-powered cars. (Anna Moneymaker / Pool / Getty Images / File | Sean Gallup / Getty Images / File / Getty Images)
The White House said Hertz had committed to "substantially increase its EV rentals" to corporate travelers in North America in 2024, forecasting an eight-fold increase in those rentals compared to 2022. That commitment, according to the announcement, would help avoid an estimated 17,800 metric tons of carbon emissions.
"Throughout our 105-year history, Hertz has moved people and things," Hertz states on its website. "Now, within a changing mobility landscape, we are building a more diversified fleet for our customers, including electric vehicles. EVs offer our customers a premium driving experience, attractive economics in the form of lower energy prices and the opportunity to reduce carbon emissions."
In response to Hertz's announcement Thursday, a White House official told FOX Business the company's actions wouldn't impact Biden's EV goals. The official added that, conversely, the move would increase the number of used EVs on the market which are eligible for a $4,000 tax credit under the Inflation Reduction Act.
"Within a changing mobility landscape, we are building a more diversified fleet for our customers, including electric vehicles," Hertz states on its website. (Hertz / Fox News)
Hertz declined to comment further in an email to FOX Business.
CLICK HERE TO GET THE FOX NEWS APP
Since taking office in 2021, the Biden administration has made an aggressive push to broadly electrify the transportation sector as part of its climate agenda. Among its chief actions, the administration in April 2023 proposed the most aggressive federal tailpipe emissions ever crafted. If finalized and implemented, a staggering 67% of new sedan, crossover, SUV and light truck could be electric by 2032, the White House projected.
It has also sought to expand federal tax credits for new, used and leased EVs in an effort to bring down prices for consumers.