The CEO of Hertz, Stephen Scherr stepped down and is being replaced. Coming out of bankruptcy, the rental car giant placed an initial order for 100,000 Teslas to be used as rentals, although they only completed the purchase of a fraction of that number. It was pretty clear people were not ready to rent electric vehicles by the low utilization rate. After Scherr became CEO in 2022, Hertz also placed big orders with EV-maker Polestar. Tesla has continually slashed prices since then which put Hertz upside down in all the vehicles they owned. Just a couple of months ago, Hertz took an almost 250 million charge-off to assist in liquidating some of the electric cars. It is no surprise Hertz just made this announcement.
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Hertz will soon have a new CEO. The rental car company recently announced that Gil West, former Chief Operating Officer of Delta Airlines and GM's Cruise unit, will become Chief Executive Officer effective April 1, 2024, at which time he will join the Board. West will succeed Stephen Scherr, who has decided to step down as Chief Executive Officer and member of the Board of Directors on March 31, 2024. In Hertz's press release, the company says West and Scherr will work together over the next several weeks to ensure a smooth transition.
“We are thrilled to have Gil join Hertz as Chief Executive Officer," said Tom Wagner, Vice Chair of the Hertz Board of Directors. "Gil's experience as a successful leader in operationally intensive businesses will further strengthen the Company's world class team of over 27,000 global employees who work tirelessly to deliver outstanding service to customers daily. We are appreciative of Stephen's contribution over the last two years, including on a number of key strategic initiatives, which Gil will now lead in their continued execution."
"I am excited to join Hertz and build on its extraordinary family of brands and global network," said West. "With a 106-year history, Hertz enjoys incredible brand strength and customer loyalty and I look forward to working with the team to achieve its potential for our customers, team members and shareholders."
"Gil's success in leading over 70,000 people at Delta and orchestrating highly effective operational turnarounds will position him well to lead Hertz. He will be able to build upon the strategic projects begun during Stephen's tenure, including improvements to technology, commercial partnerships and the revitalization of our value brands. Gil's prior experience in transportation, travel and mobility will give him important perspective on how to thoughtfully lead Hertz into the future," said Colin Farmer, Lead Director of the Hertz Board of Directors.
"Over the last two years, the Hertz team has worked diligently to put the company on track for long-term success in a changing automotive landscape," said Scherr. "Hertz is well-positioned for the future, and I look forward to seeing the company execute on its strategy as a leader in mobility."
Earlier this year Hertz announced it would sell-off 20,000 of its electric vehicles. You can read more about the company's 2020 bankruptcy filing here.
