Hertz CEO Stephen Scherr steps down following failed electric vehicle initiative


Hertz CEO Stephen Scherr steps down following failed electric vehicle initiative

Automotive expert Mike Caudill shared his perspective on The Bottom Line regarding the Treasury secretary’s statement on the promising future of electric vehicles in America. The news of Hertz, one of the world’s largest car rental companies, replacing its CEO after backing out of their electric vehicle rental plans due to rising costs also made headlines. Stephen Scherr, who led Hertz for over two years and was previously with Goldman Sachs for nearly three decades, will step down as CEO and Board member effective March 31.

Scherr’s resignation follows Hertz’s decision to sell approximately 20,000 electric vehicles from its U.S. fleet, representing about one-third of its global EV fleet, and shift focus to gas-powered cars due to high repair costs and low demand for EV rentals. This move came after the company faced challenges with its EV investment, resulting in its biggest quarterly loss since 2020. The Biden administration had previously praised Hertz for its commitment to electric vehicles as part of the effort to electrify the transportation sector as part of the climate agenda.

In light of Scherr’s departure, Hertz has announced Gil West, former COO of Delta Airlines and GM’s Cruise unit, as the new CEO starting April 1. Scherr will work alongside West in the coming weeks to ensure a smooth transition. These recent developments highlight the challenges and changes in the automotive industry as companies navigate the transition to electric vehicles while balancing costs and consumer demand.

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