CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas

[mahatmakanejeeves]

CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas

BYERIK SCHATZKER, DAVID WELCH, SRIDHAR NATARAJAN AND BLOOMBERG
March 15, 2024 at 8:06 PM EDT

Hertz Global Holdings Inc. is replacing its chief executive officer in the wake of a disastrous bet on electric vehicles that the company began unwinding in recent months.

Stephen Scherr, who ran Hertz for just over two years after three decades at Goldman Sachs Group Inc., has decided to step down, the rental-car company said late Friday in a statement. It’s replacing him with Gil West, the former chief operating officer of General Motors Co.’s Cruise robotaxi unit. West also will join the board of directors on April 1, according to the statement, which confirmed an earlier Bloomberg report.

Scherr, 59, joined Hertz several months after it emerged from bankruptcy and started making splashy wagers on electric vehicles. Under new owners Knighthead Capital Management and Certares Management, the rental company announced plans to order 100,000 vehicles from Tesla Inc., sending the automaker’s market capitalization soaring past the $1 trillion mark at the time.

{snip}

[dchill]

1. That's some high stakes gambling!

I bet he smelt fart.

[EYESORE 9001]

3. He's one fart smeller alright

Whatever his compensation came to, I would‘be led the company and pulled half-baked decisions out of my ass for 1/10 the price.

[bucolic_frolic]

2. That's the price of being an early adopter of new technology

[dchill]

4. Unsafe at any speed.

[kacekwl]

5. Any company that

Buys 100,000 vehicles from any manufacturer should demand additional warranty assistance from said manufacturer or no deal.

[Midnight Writer]

6. I'm no businessman, but it makes sense to me for these corporations to hire CEOs from within the company.

People who have worked on the floor, who know from experience what works for the company and what doesn't, who have experienced the ups and downs of the company, who have a personal interest (other than making money) in the welfare of the company.

Would you hire a carpenter to repair your car, or hire a dentist to remove your gall bladder?

[tulipsandroses]

7. I wonder how much the person to person car rentals have affected the big rental companies?

I know a few folks doing this as a side hustle. Aside from betting on Tesla, I wonder if people are choosing to use TURO over companies like HERTZ? Uber wasn’t a big competitor for taxis in the beginning. I honestly will choose an Air B n B over a hotel these days. I wonder if TURO is having that effect yet.

[stopdiggin]

8. the only bigger risk than some entitled moron

driving a fashion statement - - is an entitled (and clueless) 'renter' driving the same 'bling'. - - - - - - - - -

[MichMan]

9. Curious to know how popular they were with customers

The number of people who would rent one just to try one out vs those who didn't want to deal with unfamiliar recharging procedures, charger locations, and range anxiety while on vacation or a business trip.

For a short term rental, fuel savings aren't a factor.