Hertz Global Holdings has announced that Chief Executive Officer Stephen Sher will take on the next position. get off According to reports on Friday, from his position at the end of the month press release.
Hertz moved to reduce its electric vehicle inventory earlier this year, despite previously setting a goal to have 25% of its fleet electric by the end of 2024. Citing high repair costs, Hertz said it would sell 20,000 units, or about one. – Account for one-third of the world’s EV vehicles and reinvest that money into gasoline-powered alternatives.
The company has agreed to buy 100,000 Teslas by the end of 2022 and 65,000 Polestars over the next few years. Hertz has since reevaluated its EV investments.
Hertz’s used car website had more than 700 EVs listed for sale in January, including Tesla’s Model 3 and Model Y, BMW’s i3 and Chevrolet’s Bolt. The company aims to sell all its cars by 2025.
The cost of repairing crashes and damage for EVs was significantly higher than for gas-powered vehicles, Hertz said.
”[C]“Crash and damage repairs for EVs often take approximately twice as long as comparable internal combustion engine vehicles,” Shah said at the time of the announcement.
“Remember, in GM etc. [automakers]“For decades, an extensive national parts supply network has been established,” Shah explained, adding that “there is an aftermarket for parts, but it is clearly less mature in the Tesla context.” explained.
“The fair market value of our EVs is lower compared to last year due to a decline in the manufacturer’s suggested retail price of EVs throughout 2023, primarily due to Tesla, and recalls will result in higher losses and burdens,” he said. ” he said. Added.
“Costs related to crashes and injuries, primarily related to electric vehicles, continued to be high during the quarter,” Hertz said in a regulatory filing in January. Last month, the company announced its biggest quarterly loss since 2020 following the company’s decision to rescind its EV target.
Shah will step down as CEO after two years with the company and will no longer serve on the company’s board of directors.
Gil West, former chief operating officer of Delta Air Lines and General Motors’ cruise division, will become Hertz’s new CEO starting April 1.
Tom Wagner, vice chairman of the Hertz board of directors, said the company is “thrilled” to welcome West.
“Gill’s experience as a successful leader in operations-intensive businesses brings us to the world-class leadership of our company of more than 27,000 employees worldwide who work tirelessly to provide superior service to our customers every day. He will further strengthen our team and we are grateful for Stephen’s contributions over the past two years. “It will be,” Wagner said.
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