The EV push goes bust and the CEO resigns

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Hertz, one of the four largest car rental companies in the world, is replacing its CEO after the company reversed its bet on electric vehicle (EV) rentals over increasing costs.
Stephen Scherr will step down as Hertz Global Holdings Inc.’s chief executive officer and member of the company’s Board of Directors effective March 31, the company announced Friday.
Scherr led Hertz for just over two years after spending nearly three decades at Goldman Sachs.
Scherr’s resignation comes as the car rental company struggles with the higher repair costs and low demand for EV rentals.
In January, Hertz announced in financial filings that it had made the “strategic decision” to sell approximately 20,000 EVs from its U.S. fleet, or about one-third of its global EV fleet, and to instead invest in gas-powered cars.
GM LOST TAX CREDITS ON 20,000 EVS DUE TO BATTERY SOURCING REQUIREMENTSThe Biden administration has previously lauded Hertz for its investment in EVs as the president made an aggressive push to broadly electrify the transportation sector as part of his climate agenda.
Last month, Hertz announced its biggest quarterly loss since 2020 after its decision to pivot away from EVs.
Scherr, 59, joined Hertz as the company was emerging from bankruptcy and began betting big on EVs.
EVS MAY MAKE AIR DIRTIER THAN GAS-POWERED CARS AS CALIFORNIA PUSHES NEW MANDATES: STUDYTicker Security Last Change Change % HTZ HERTZ GLOBAL 7.58 +0.09 +1.20%Hertz will replace Sherr with Gil West, the former Chief Operating Officer of Delta Airlines and General Motors’ Cruise unit, effective April 1.
GET FOX BUSINESS ON THE GO BY CLICKING HEREScherr is working with West over the coming weeks to ensure a smooth transition, the company said.

Hertz, one of the top four car rental companies globally, is changing its CEO following a reversal of its position on renting electric vehicles (EVs) due to rising expenses.

As CEO of Hertz Global Holdings Inc., Stephen Scherr will retire. , with effect from March 31, as the company declared on Friday, as its chief executive officer and a member of its board of directors. After working for Goldman Sachs for almost thirty years, Scherr was the CEO of Hertz for just over two years.

The resignation of Scherr coincides with the car rental company’s struggles due to rising repair costs and a decline in demand for electric vehicle rentals.

Hertz declared in financial documents from January that it had taken the “strategic decision” to sell about 20,000 EVs from its U.S. S. fleet, or roughly one-third of its worldwide EV fleet, and to substitute that money for purchases of gas-powered vehicles.

DUE TO BATTERY SOURCING REQUIREMENTS, GM LOST TAX CREDITS ON 20,000 EVS.

Formerly, as part of his climate agenda, President Biden aggressively pushed to electrify the transportation sector generally. For this reason, the Biden administration praised Hertz for its investment in electric vehicles.

Hertz declared its largest quarterly loss since 2020 last month following its decision to move away from electric vehicles.

Hertz was coming out of bankruptcy when Scherr, then fifty-nine, joined and made a major bet on electric vehicles.

According to a study, as California pushes for new mandates, electric vehicles may make the air dirtier than gas-powered vehicles.

Ticker Security Last Change Change percentage HTZ HERTZ Global 7.58 +0.09 +1.20 percent.

With effect from April 1, Gil West, the former COO of General Motors’ Cruise division and Delta Airlines, will take Sherr’s place at Hertz.

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According to the company, Scherr will be collaborating with West in the upcoming weeks to guarantee a seamless transition.

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