Joe Biden was furious over the reason Hertz decided to sell 20,000 EVs and purchase more gas-powered autos

Jan 19, 2024

The Biden administration’s effort to force Americans to switch to electric vehicles (EVs) has hit a major roadblock.

The growing opposition to the mandates is holding back Biden’s plans.

That’s why Joe Biden was furious over the reason Hertz decided to sell 20,000 EVs and purchase more gas-powered autos.

Hertz, one of America’s largest car rental companies, has announced they are selling roughly 20,000 electric vehicles.

Rebuilding with gas-powered cars

But they aren’t stopping there.

Hertz also announced that it will be rebuilding its fleet with gas-powered vehicles.

The rental car giant said higher repair costs is one of the main reasons behind the move to sell off its fleet of EVs.

The move by Hertz is in stark contrast to its earlier announcement that it would order 100,000 Tesla EVs by the end of 2022.

According to Reuters, the selling off of the EVs will reportedly result in about $245 million in depreciation expenses for Hertz.

But it will save the company hundreds of millions of dollars in increased repair and maintenance costs.

This move by Hertz is just one more black eye for the Biden administration’s push to force EVs onto the American people.

It comes on the heels of major car makers switching gears and trying to cut losses that they’ve suffered from switching over to EVs.

And it is yet another sign that the EV market is not ready for prime time.

In addition to soaring maintenance and repair costs, EVs have suffered increasing breakdowns, an inability to travel distances as advertised, and even multiple battery explosions.

Potholes on the road to EV dominance

These problems and the lack of consumer enthusiasm for the EV market has led to falling sales.

This drop in sales has caused leading automakers like General Motors and Ford to announce that they are scaling back production plans for electric vehicles.

And Morgan Stanley analyst Adam Jonas said Hertz’s move was yet another sign that EV expectations need to be “reset downward.”

Jonas pointed to all the other “hidden costs to EV ownership” as a major contributing factor to this downward spiral.

And those hidden costs seem to be a major reason for Hertz’s actions.

“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter,” Hertz said in a regulatory filing.

The company had earlier planned to order 100,000 Tesla vehicles by the end of 2022 and 65,000 from Polestar over five years.

Instead, it is going to focus on improving profitability for the remainder of its EV fleet after the selloff.

German-owned rental car company Sixt said in December that it had not purchased Tesla vehicles since 2022 and was selling its fleet “as part of our regular de-fleeting process.”

While the Biden administration and the green lobby continues to push the forced change to EVs, they ignore the major problems that continue to grow and are costing taxpayers millions of dollars.

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