The CEO of car rental company Hertz Global Holdings is resigning after his bet on electric vehicles collapsed.
The announcement was made on Friday after Stephen Shah took office. Ran According to the company has been working for more than 2 years luck magazine.
The report noted that the company had just experienced bankruptcy when Mr. Scheer took over the leadership team.
Hertz then announced plans to order 100,000 cars from Tesla. luck Article continues:
Hertz has ramped up EV development in the months since Mr. Scheer took over, placing large orders with China’s Geely Automobile, Polestar and GM, electric car makers owned by Sweden’s Volvo Cars. The company ultimately purchased a small number of cars from both companies, a spokesperson said.
Those bets went awry last year when Tesla lowered prices across its lineup to keep car sales growing. This led to a significant drop in the resale value of used Model 3 sedans and Model Y crossovers, just after Hertz added tens of thousands of Model 3 sedans and Model Y crossovers to its fleet.
The company has started selling about 20,000 electric vehicles towards the end of 2023, the magazine continued.
“Hertz announced plans to sell EVs in January, citing weak demand, rising depreciation costs, and rising repair costs.
The Estero, Florida-based company took a $245 million charge and reported its biggest quarterly loss since the pandemic.
In October, Hertz’s profitability wavered and the company began criticizing Elon Musk’s decision to “go green” with electric cars, Breitbart News reported.
“The company blames its recent quarterly profit miss on Tesla’s price cuts and unexpectedly high EV repair costs, both of which are due to Hertz’s decision to produce Tesla vehicles in large numbers. “This has caused a huge problem,” the paper said.
File/Steven Shah speaks at the Latin America World Economic Forum 2012 in Puerto Vallarta, Mexico, Tuesday, April 17, 2012. (Jon Halty/Bloomberg via Getty Images)
In January, Breitbart News reported that Hertz was selling tens of thousands of electric vehicles due to lack of demand, and that the company intended to replace them with gas-powered vehicles.
“This news comes as U.S. car dealers warn that despite all efforts by the Biden administration to get Americans into EVs, consumers are far less likely to buy EVs than traditional gasoline-powered cars.” “The announcement was made during the same period,” the paper said.
Mr. Hertz will replace Mr. Shah with Gil West, the former chief operating officer of General Motors’ cruise robotaxi division. luck said the report.
The article said, “Mr. Shah’s successor, Mr. West, comes after California regulators accused the company of withholding information about one of its self-driving cars hitting and dragging a pedestrian. He was one of nine Cruise executives fired by GM late last year.
Meanwhile, Tesla is questioning its ability to sustain growth and maintain its leadership in the electric vehicle market, Breitbart News reported on Saturday.
