Hertz CEO Resigns After Electric Vehicle Bet Fails

SOURCE www.breitbart.com
The CEO of Hertz is resigning after a failed bet on electric vehicles, leading to significant financial losses for the company. Hertz had ordered a large number of EVs from Tesla, Polestar, and GM, but faced challenges with low demand, depreciation, and costly repairs. The company incurred a $245 million charge and its biggest quarterly loss since the pandemic. Hertz is now selling off its electric cars due to lack of demand and high repair costs, replacing them with gas-powered vehicles.

Key Points

  • Hertz ordered 100,000 cars from Tesla, Polestar, and GM, but struggled with resale value and repair costs.
  • The company sold approximately 20,000 electric vehicles due to lackluster demand and costly depreciation.
  • The new CEO, Gil West, replaces Stephen Scherr after the failed EV bet.

Pros

  • Hertz attempted to transition to electric vehicles to support sustainability goals.

Cons

  • Hertz faced financial losses due to low demand, depreciation, and expensive repairs of electric vehicles.