Hertz Global Holdings Inc. is making changes at the top after facing challenges related to its venture into electric vehicles (EVs), according to reports. Stephen Scherr, who led Hertz for around two years, has decided to step down from his role as chief executive officer (CEO). In his place, Gil West, former chief operating officer (COO) of General Motors Co.’s Cruise robotaxi unit, will take over as CEO and also join the board of directors on April 1.
Hertz’s journey with EVs began after emerging from bankruptcy, when it placed significant orders for electric vehicles. These included plans to purchase 100,000 vehicles from Tesla Inc., which initially boosted Tesla’s market value. However, as Tesla reduced prices on its vehicles, the resale value of Hertz’s EV fleet was affected, leading to the decision to sell off 20,000 electric vehicles, or about a third of its EV fleet.
West, the incoming CEO, brings extensive experience, having previously held positions at Delta Air Lines Inc. and Cruise. He is seen as a strategic choice due to his familiarity with EVs and understanding of the challenges in electrification.
Hertz has seen changes in leadership before, with previous CEOs attempting to position the company as a stronger competitor in the car rental industry. The move to replace Scherr comes as Hertz navigates through challenges and seeks to improve its performance.
Scherr will support the transition until his departure from the company and its board on March 31. The appointment of West signals a new chapter for Hertz as it continues its efforts to adapt to market demands and improve its business strategy.
