Hertz Global Holdings Inc. has replaced its CEO, Stephen Scherr, with Gil West, the former COO of General Motors’ Cruise robotaxi unit, following a failed bet on electric vehicles (EVs). Scherr, who led Hertz for over two years after a stint at Goldman Sachs, stepped down after the company began to unwind its EV investments. Under Scherr, Hertz had ordered 100,000 vehicles from Tesla and placed large orders with Polestar and GM. However, a price cut by Tesla depreciated the resale value of Hertz’s EV fleet, leading to the company selling off a third of its EV fleet. The company cited lackluster demand, costly depreciation, and expensive repairs as reasons for the sell-off.
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