Atlanta, Georgia – Hertz Global Holdings Inc., one of the world’s largest car rental companies, is undergoing a leadership change as it shifts its focus away from electric vehicles (EVs) back to gas-powered cars due to mounting costs.
On Friday, the company announced that CEO Stephen Scherr will be stepping down from his position, effective March 31. Scherr, who had been at the helm for just over two years, is resigning amidst challenges related to high repair costs and low demand for EV rentals.
In a strategic move disclosed in January, Hertz revealed plans to sell approximately 20,000 EVs from its U.S. fleet, representing one-third of its global EV fleet. This decision marked a significant shift away from its previous emphasis on EVs in favor of investing in traditional gas-powered vehicles.
The Biden administration had previously commended Hertz for its commitment to EVs as part of a broader push to promote electric vehicles and combat climate change. However, Hertz’s recent pivot underscores the complexities and challenges associated with transitioning to a fully electric fleet.
Following Scherr’s departure, Hertz will be appointing Gil West, the former Chief Operating Officer of Delta Airlines and General Motors’ Cruise unit, as the new CEO starting on April 1. Scherr will be working closely with West in the coming weeks to facilitate a seamless transition of leadership within the company.
The decision to replace Scherr and refocus the company’s strategy highlights the dynamic nature of the automotive industry and the ongoing evolution of transportation technologies. As Hertz navigates these changes, the appointment of a new CEO signals a fresh chapter for the company as it adapts to shifting market trends and consumer preferences.