As you can tell by his tinfoil hat, the Hermit is pretty sure those conspiracy theories about aliens and the government's mind-reading rays are all true. He's dedicated his life to searching for aliens in his run-down RV — forty years and counting, though with the risks he takes, it's surprising he's made it this long.
The hermit was camped out in an irradiated desert in Grand Valley hunting for aliens when Strongarm and Sideswipe encountered him. Assuming they were ordinary vehicles being driven by humans, he asked them if they'd seen any aliens and Strongarm answered in the negative before the two Autobots drove off to leave him to his search
Learning of the hermit's presence in the valley, Bumblebee assigned Strongarm and Sideswipe to get him to evacuate. They soon found him, but when Strongarm told him there was a radiation danger, he refused to leave because he hadn't found aliens. Against Strongarm's advice, Sideswipe transformed. The hermit was ready to go tell the press and/or army, but the pair's attempts to get him to keep it quiet merely resulted in him deciding the two Autobots were cactus juice induced hallucinations. It did get him to drive off at speed. Unfortunately he suffered a flat tire, and while he was frantically changing it, he was found by Heatseeker who intended to use him as a hostage. Assuming this was another hallucination, the hermit finished changing the tire and started driving away as Bumblebee, in flying car mode, arrived. His RV managed to make it to safety before the battle ended in a large explosion.
Tracking the various reports of strange happenings near Crown City led the hermit to a cave system. He quickly encountered Fixit and believed he'd stumbled on a secret government laboratory creating "the robot overlords that are gonna replace regular humans." Aiming to get proof, he ventured further inside, where he began taking pictures of the equipment until Denny and Russell interrupted him. They successfully convinced him that they were miners and Fixit was the "Fixit 500". As he left, the rest of the Bee Team arrived, and he told them they were wasting their time if they were looking for aliens.