Hertz’s CEO to step down as car renter unwinds EV bet

Hertz is replacing its chief executive officer with Gil West, the former COO of General Motors’ Cruise robotaxi unit.

Hertz Global Holdings Inc. has announced a significant change in leadership as it navigates through the aftermath of its EV venture. In a recent statement, the rental-car company disclosed that Stephen Scherr, its current chief executive officer, will be stepping down. Scherr, who brought with him over three decades of experience from Goldman Sachs Group Inc., had led Hertz for just over two years.

The decision to replace Scherr comes amidst the company's struggles following its ambitious bet on electric vehicles. Hertz began unwinding this venture in recent months, facing challenges such as lackluster demand, costly depreciation, and expensive repairs. The aftermath of this move led to the company's biggest quarterly loss since the pandemic hit.

Replacing Scherr is Gil West, the former Chief Operating Officer (COO) of General Motors’ Cruise robotaxi unit. West, who had also served in similar capacities at Delta Air Lines Inc., brings a wealth of experience in operational efficiency and integration strategies.

West's appointment marks a strategic shift for Hertz as it seeks to navigate a competitive landscape and regain its footing in the market. The move reflects the company's acknowledgment of the need for a leader with firsthand experience in EVs and a keen understanding of the challenges associated with electrification.

Even before the formal announcement of Scherr's departure, speculation had been rife about potential successors. Tom Wagner at Knighthead Capital Management and Greg O’Hara at Certares Management, Hertz's new owners, had identified West as a prime candidate for the CEO position. Their confidence in West's abilities stems from his prior experience and understanding of the intricacies of the automotive industry.

West's tenure at Hertz will undoubtedly be closely watched, as the company aims to reclaim its position as a profitable player in the car rental market. With a focus on strategic decision-making and operational efficiency, Hertz under West's leadership aims to compete more vigorously against industry stalwarts like Enterprise Holdings Inc. and Avis Budget Group Inc.