In yet another blow to the Biden administration's attempts to force a "green" (read: extremely not green) energy "transition" as part of the president's crusade to "end" fossil fuels, the Hertz rental car company has announced that it's abandoning its electric vehicles and pivoting back to gasoline-powered cars.
On Thursday, Hertz said it was selling off 20,000 of its electric vehicles —roughly one-third of its EV fleet — and will replace them with gas-powered vehicles in its for-rent fleet. As Axios reported, the company cited the high cost of repairing its EVs as part of its decision to pivot back to good ol' gasoline vehicles.
⚠️ JUST IN :
— Investing.com (@Investingcom) January 11, 2024
*HERTZ TO SELL ABOUT 20,000 ELECTRIC VEHICLES FROM U.S. FLEET DUE TO LOW DEMAND AND HIGHER COSTS
*HERTZ TO USE A PORTION OF THE MONEY RAISED TO BUY GAS POWERED CARS$HTZ pic.twitter.com/mjbCm1OVg8
As Axios' report reminded, "[t]he move marks an abrupt reversal by Hertz, which in 2022 announced plans to buy 165,000 EVs from Tesla and Volvo unit Polestar" and said the move means "a $245 million loss" for Hertz.
In 2023, Hertz boasted that it was being recognized by the Biden administration for its "efforts to expand access to electric vehicles across the country," claiming demand for EV rentals was "growing."
This morning, @Hertz was recognized by The White House for our efforts to expand access to electric vehicles across the country. Demand for EV rentals is growing and we’re here to help our customers electrify their travels. #HertzLetsGo #HertzEV https://t.co/rLJa0lmHG8
— Hertz (@Hertz) March 30, 2023
In a report on the decision, Reuters noted that Hertz's pivot away from plug-ins is "another sign that EV demand has cooled," undercutting the company's plan to have a quarter of its fleet made up of electric vehicles.
Hertz, however, is hardly the first major company to end up with buyer's remorse for launching into EVs. As Townhall reported in December, Ford dealt a blow to Biden's energy "transition" pipe dream when it announced that it was "cutting planned production of its all-electric F-150 'Lightning' pickup truck 'roughly in half' in 2024" amid "billion-dollar losses, inflated costs, high interest rates, and lagging demand" for EVs.
Much like Hertz, the pivot by Ford was "a major reversal after the automaker significantly increased plant capacity for the electric vehicle in 2023," said CNBC.