Hertz Shifts Gears: New CEO Takes Wheel After Electric Vehicle Gamble Backfires

Buckle up, car enthusiasts! Hertz, a household name in rental cars, just announced a leadership shakeup. Stephen Scherr, who steered the company for the past two years, is stepping on the brakes. This comes after Hertz’s big bet on electric vehicles (EVs) sputtered out, leaving them with a deflated tire.

Scherr, a Goldman Sachs veteran, is handing the keys over to Gil West. West brings a different kind of horsepower to the table. He’s the former chief operating officer of General Motors’ self-driving car unit, Cruise. This suggests Hertz might be looking to navigate future roads with a blend of traditional rentals and potentially, autonomous vehicles.

Why the Electric Skid?

So, what caused Hertz to ditch the electric dream? Analysts point to a few factors. The initial surge in EV demand Hertz anticipated didn’t quite materialize. Additionally, the used car market, where Hertz typically offloads older vehicles, wasn’t as receptive to a glut of electric cars.

West’s Road Map

While the specifics of West’s plan remain under the hood, his background in self-driving cars hints at a potential shift towards future mobility solutions. Hertz might be looking to hedge their bets by offering a mix of rentals, including traditional gasoline-powered cars, alongside potentially incorporating autonomous vehicles into their fleet.

Looking Ahead

Only time will tell how Hertz navigates this turn in the road. Will West steer them towards a future filled with electric rentals or autonomous adventures? One thing’s for sure, the car rental industry is in for an interesting ride.

Source