Hertz Global Holdings Inc announced on Friday that CEO Stephen Scherr would be stepping down, to be replaced by Gil West, a former executive at Delta Airlines and General Motors. West, who is set to take over on April 1, comes with a wealth of experience, having served as COO at Delta and overseeing GMâs self-driving Cruise unit.
The decision for Scherr to resign follows what he described as a âdistractionâ stemming from the company’s investment in electric vehicles (EVs). Hertz had previously positioned itself as a leader in the EV rental market, boasting the largest fleet of EVs in the U.S. However, the investment did not yield the expected results, with Hertz reporting a $348 million loss attributed to the EV fleet.
In a statement, Tom Wagner, vice chair of Hertzâs board, expressed enthusiasm about West joining the team, stating, âGilâs experience as a successful leader in operationally intensive businesses will further strengthen the Companyâs world-class team of over 27,000 global employees who work tirelessly to deliver outstanding service to customers daily.â
West himself expressed excitement about the new role, saying, âI am excited to join Hertz and build on its extraordinary family of brands and global network. With a 106-year history, Hertz enjoys incredible brand strength and customer loyalty.â
Scherr, who joined Hertz in 2022 and led the company through its emergence from bankruptcy, cited unexpected maintenance costs and challenges in selling the EVs as reasons for the financial setback. He assured investors that the company had made adjustments to its EV fleet and was focused on reducing operational distractions.
âWe think weâve landed on an EV fleet that meets demand,â Scherr said in February. âBut I can assure you, if those numbers donât scratch to an adequate return, then we will take further action against that fleet.â
The transition from Scherr to West is expected to be smooth, with the two executives working together over the next several weeks to ensure a seamless change in leadership.
