Hertz CEO Resigns Amid EV Strategy Reversal and Financial Strain

The rental car giant faces a leadership change and a significant pivot from its electric vehicle ambitions after costly setbacks.

Hertz Global Holdings Inc. announces CEO Stephen Scherr will step down at the end of March following a shift away from electric vehicles (EVs) due to high costs and low demand.
Scherr, who led Hertz for over two years, will be replaced by Gil West, former COO of Delta Airlines and GM's Cruise unit, starting April 1.
The company faced significant financial losses, including a $245 million hit to earnings from the devaluation of its EV fleet, leading to its largest quarterly loss since the pandemic.
Hertz's decision to sell about 20,000 EVs, including Teslas, from its fleet was driven by costly repairs and depreciation, as well as a lack of charging infrastructure for rental customers.
The move marks a significant pivot from Hertz's earlier strategy to lead in EV rentals, a plan initially supported by investments in 100,000 Teslas and vehicles from Polestar and GM.