Hertz CEO Stephen Scherr has determined to step down following the rental agency’s large wager on Tesla and different EVs went awry, because the debacle value the corporate large.
Hertz introduced on Friday that Scherr would go away his submit as CEO and a member of the Board of Administrators on March 31. He will likely be succeeded by former Chief Working Officer of each Delta Airways and GM’s Cruise self-driving unit, Gil West.
“We’re thrilled to have Gil be a part of Hertz as Chief Government Officer,” Tom Wagner, Vice Chair of Hertz Board, stated. “Gil’s expertise as a profitable chief in operationally intensive companies will additional strengthen the Firm’s world-class staff of over 27,000 international staff who work tirelessly to ship excellent service to prospects every day.”
The transfer got here just some months after Hertz revealed its large wager on EVs, which went south. In late 2022, Hertz positioned an enormous order for 100,000 Tesla Mannequin 3 and Mannequin Y autos. Then, it determined to bulk up its fleet with extra vehicles from different EV corporations, together with Polestar and GM.
Nevertheless, EV values dropped, particularly with Tesla, who continued to chop costs all through the majority of 2023. Hertz misplaced almost $250 million as a result of worth reductions and finally determined to promote a number of the models outright.
Hertz will cut back its EV fleet from 60,000 to twenty,000 and use “some” of the funds to bolster its combustion-engine automobile fleet.
Scherr leaves Hertz after two years and believes his work helped the corporate stay aggressive in a massively altering trade.
“During the last two years, the Hertz staff has labored diligently to place the corporate on monitor for long-term success in a altering automotive panorama,” he stated. “Hertz is well-positioned for the long run, and I sit up for seeing the corporate execute on its technique as a pacesetter in mobility.”
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