White House Praised Hertz for 'Accelerating the EV Transition' Months Before Company Began Dumping EVs
The White House praised Hertz for its efforts to increase electric vehicle rentals, but months later the company announced a mass sell-off of EV inventory.
Hertz's Strategic Decision to Sell EVs
Hertz Global Holdings announced that it made the 'strategic decision' to sell approximately 20,000 EVs from its U.S. fleet. The company cited increasing costs as the reason for the decision. Sales of the EVs began in December and will continue throughout 2024.
The move is aimed at balancing the supply and demand of EVs and reducing the company's expenses and damage associated with EVs. Hertz will continue to offer a wide selection of vehicles and actively manage the size and allocation of its EV fleet.
Despite the sell-off, a portion of the proceeds will be invested in new gas-powered cars.
White House's Previous Praise for Hertz
The White House had previously praised Hertz for its commitment to transition its fleet to one that relies more on EVs. In March 2023, the White House highlighted Hertz's efforts in 'accelerating the EV transition.' The company was recognized for expanding access to EVs, and it was expected to play a role in President Biden's goal of having 50% of vehicle sales be electric by 2030.
In addition, the White House announced that Hertz would help ensure federal employees have access to EVs when traveling. The company had committed to substantially increasing its EV rentals to corporate travelers in North America, which would help reduce carbon emissions.
However, the recent sell-off of EVs by Hertz contradicts the previous praise from the White House.
Impact on Biden's EV Goals
The White House stated that Hertz's decision to sell EVs would not impact President Biden's EV goals. In fact, it argued that the move would increase the number of used EVs on the market, which are eligible for a $4,000 tax credit.
The Biden administration has made a push to electrify the transportation sector as part of its climate agenda. It has proposed aggressive federal tailpipe emissions standards and expanded tax credits for EVs. The sell-off of EVs by Hertz could potentially increase the availability of used EVs and support Biden's efforts.
