Hertz CEO Out After EV "Horror Show"

Rental car company Hertz continues to face trouble and turmoil. Following the announcement in January that it would sell 20,000 electric vehicles (EVs) from its fleet, approximately a third of its EVs, Hertz is now replacing the CEO who spearheaded the expansion of that fleet.

Stephen Scherr, who joined the company two years ago after nearly three decades at Goldman Sachs, is stepping down at the end of this month. I Photo: PR Newswire

This marks the company's fifth CEO in just four years. Chris Isidore reported for CNN.

Stephen Scherr, who joined the company two years ago after nearly three decades at Goldman Sachs, is stepping down at the end of this month. He will be succeeded by Gil West, former chief operating officer of Delta Air Lines and General Motors' Cruise unit.

In the most recent quarter, Hertz suffered a $245 million blow to its earnings due to the depreciating value of the EVs it was selling.

Despite a 40% surge in the number of EVs purchased by American customers last year, exceeding 1 million for the first time, demand fell short of expectations for some traditional automakers offering EVs.

Tesla, a leader in US EV sales, initiated a price war for EVs over a year ago, driving down the value of both new and used EVs, including those in Hertz's fleet. The decrease in prices impacted Hertz's bottom line as it reduced the expected resale value of the vehicles.

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