Hertz CEO Resigns After Blowing Big Gamble On EVs

Press2ToContinue quotes a report from the Gateway Pundit: Stephen Scherr, chief executive officer of Hertz Global Holdings Inc. and a member of its board of directors, will step down on March 31, following the car rental company's largest quarterly loss since 2020 after a risky bet on electric vehicles. According to Fox Business, Scherr is working with Gil West, former chief operating officer of Delta Airlines and General Motors' Cruise unit, to ensure a smooth transition. West will officially start his new role at Hertz on April 1.

Scherr, 59, joined Hertz two years ago as the company was emerging from bankruptcy and putting a big focus on EVs during that time. Hertz soon discovered that EVs are more expensive to maintain than they had initially thought. Scherr reportedly told investors that Hertz's profits experienced a $348 million loss, which he blamed EVs for. In January, Hertz announced its plan to offload 20,000 electric vehicles from its U.S. fleet throughout 2024, and switch back to gas cars.

In November, the Associated Press reported on a Consumer Reports survey that found EVs from the 2021 to 2023 model years are significantly less reliable than gasoline-powered vehicles. A whopping eighty percent less reliable, according to the AP, particularly with battery and charging systems, as well as fit issues with body panels and interiors. Car dealers and manufacturers are reportedly also struggling to sell EVs despite using deep discounts and promotional tactics. In 2021, Hertz announced plans to order 100,000 Tesla vehicles by the end of 2022. It later said it would buy 'up to' 65,000 Polestar EVs for its rental fleet over the next five years.

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