Hertz CEO Stephen Sher resigns after big bet on EVs fails

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By journalsofus.com


Hertz, one of the world’s four largest car rental companies, is replacing its CEO after reversing its move to electric vehicle rentals due to rising costs.

Stephen Scherrer will step down as chief executive officer of Hertz Global Holdings Inc. and a member of the company’s board of directors, effective March 31, the company announced Friday. Sher has led Hertz for a little more than two years after spending nearly three decades at Goldman Sachs.

Sher’s resignation comes at a time when the car rental company is struggling with high repair costs and low demand for EV rentals.

In January, Hertz announced in financial filings that it had made a “strategic decision” to sell approximately 20,000 EVs from its US fleet, or about a third of its global EV fleet, and instead invest in gas-powered cars.

The Biden administration has previously praised Hertz for investing in EVs as the president pushes aggressively to broadly electrify the transportation sector as part of his climate agenda.


stephen lion
Stephen Sher has led Hertz for just over two years after spending nearly three decades at Goldman Sachs. mark mcqueen

Last month, Hertz announced its biggest quarterly loss since 2020 following its decision to move away from EVs.

Sher, 59, joined Hertz as the company was emerging from bankruptcy and began betting big on EVs.


    a hertz tesla electric vehicle
Last month, Hertz announced its biggest quarterly loss since 2020 following its decision to move away from EVs. Above a Hertz Tesla electric vehicle. reuters

Hertz will replace Sher with Gil West, former chief operating officer of Delta Airlines and General Motors’ cruise unit, effective April 1.

Sher is working with West in the coming weeks to ensure a smooth transition, the company said.

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