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Hertz CEO Stephen Scherr Resigns After EV Push Goes Bust


ice-capades

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Hertz CEO Stephen Scherr Resigns After EV Push Goes Bust

https://www.foxbusiness.com/lifestyle/hertz-ceo-stephen-scherr-resigns-ev-push-goes-bust

 

FoxBusiness.com_2024-03-17_Hertz EVs.jpg

 

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.

 

The 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.

 

Hertz will replace Sherr with Gil West, the former Chief Operating Officer of Delta Airlines and General Motors' Cruise unit, effective April 1. 

 

 

Edited by ice-capades
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As we’ve discussed in other threads, rentals are probably the worst application for EVs as-is with the lack of widespread charging infrastructure.

people on trips can’t charge at most hotels and usually don’t have time to go find a charger

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Do not know about other electric vehicles, but I would not rent a Tesla unless I already owned one and was completely familiar with them ahead of time.  It’s not like renting a regular ICE car where all you need is a key and everything else can be figured out quickly, without an owner’s manual, because they all function pretty much the same with minor exceptions. 

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Actions have consequences and for this CEO  to go so hard, so quickly with adopting BEVs is seen as reckless.

I know the intention was to cater to  renters asking to hire Teslas and raising the profile of Hertz as a company

thats changing with the times but sadly, that’s all come crashing down…….too much too quick.

Edited by jpd80
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10 hours ago, rmc523 said:

As we’ve discussed in other threads, rentals are probably the worst application for EVs as-is with the lack of widespread charging infrastructure.

people on trips can’t charge at most hotels and usually don’t have time to go find a charger

 

And the damage they take from minor fender benders are more expensive to fix also. 

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22 hours ago, Rick73 said:

Do not know about other electric vehicles, but I would not rent a Tesla unless I already owned one and was completely familiar with them ahead of time.  It’s not like renting a regular ICE car where all you need is a key and everything else can be figured out quickly, without an owner’s manual, because they all function pretty much the same with minor exceptions. 

 

They really don't drive any differently than a regular car.  The biggest difference drive-wise is learning where controls are on the screen, but you'd have to learn the controls of a car you aren't familiar with regardless of brand.

The charging would be the biggest differentiating factor.

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2 hours ago, rmc523 said:

 

They really don't drive any differently than a regular car.  The biggest difference drive-wise is learning where controls are on the screen, but you'd have to learn the controls of a car you aren't familiar with regardless of brand.

The charging would be the biggest differentiating factor.


Just shows how personal experiences can be so different; and why one size doesn’t fit all.  I rented cars almost weekly for well over a decade, and not once do I recall having issues or having to read owners’ manual.  Not that most had one anyway.

 

By comparison, I’ve driven my son’s Tesla a few times and if I walked up to it without assistance (as if it was a rental at an airport) I’d have a hard time getting in and driving off.  With my son’s car it was different because it was already set up through his phone.  I’m sure rental companies provide access but that’s more involved than a key, and more hassle than I consider quick or convenient.  Just my personal choice.  The driving itself was not a big deal, though even Tesla owners sometimes screw up and inadvertently put the car in reverse, causing accidents (or drowning).

 

For me plugging in to charge would be easiest part.  In fact, when I traveled regularly, most of my trips would have not even required charging as long as car could do 200 miles.  Only in Michigan would I have needed charging regularly due to distance.

Edited by Rick73
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