Hertz, one of the world’s four largest car rental companies, is changing its CEO after withdrawing its bet on electric vehicle rentals due to rising costs.
Stephen Sher will step down as chief executive officer and member of Hertz Global Holdings’ board of directors, effective March 31, the company announced Friday. Mr. Shah led Hertz for just over two years after spending nearly 30 years at Goldman Sachs.
Shah’s resignation comes as rental car companies struggle with rising repair costs and weak demand for EV rentals.
Hearts in January announced in financial statements The company announced that it has made a “strategic decision” to sell about 20,000 EVs from its U.S. fleet, which accounts for about one-third of the world’s EV fleet, and instead invest in gasoline-powered vehicles.
of The Biden administration has previously praised Hertz recognized the president’s aggressive push for widespread electrification of the transportation sector as part of the fight against climate change, and the investment in EVs.
Last month, Hertz announced its biggest quarterly loss since 2020 due to its decision to pivot away from electric vehicles.
Mr. Shah, 59, joined Hertz as it was emerging from bankruptcy and began betting big on electric vehicles.
Mr. Hertz will replace Mr. Shah on April 1 with Gil West, the former chief operating officer of Delta Air Lines and General Motors’ cruise division.
The company said Mr. Scheer will work with Mr. West over the coming weeks to ensure a smooth transition.
