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Hertz CEO Resigns After Blowing Big Gamble on EVs

Stephen Scherr, chief executive officer of Hertz Global Holdings Inc. and a member of its board of directors, will step down on March 31, following the car rental company’s largest quarterly loss since 2020 after a risky bet on electric vehicles.

According to Fox Business, Scherr is working with Gil West, former chief operating officer of Delta Airlines and General Motors’ Cruise unit, to ensure a smooth transition.

West will officially start his new role at Hertz on April 1.

Scherr, 59, joined Hertz two years ago as the company was emerging from bankruptcy and putting a big focus on EVs during that time. Prior to that, he spent nearly 30 years at Goldman Sachs.

According to Quartz, Hertz soon discovered that EVs are more expensive to maintain than they had initially thought.

And Scherr stated to investors that EVs turned out to be more of an “operational distraction.”

Scherr reportedly also told investors that Hertz’s profits experienced a $348 million loss, which he blamed EVs for.

In January, Hertz announced its plan to offload 20,000 electric vehicles from its U.S. fleet throughout 2024, and switch back to gas cars.

This move contrasts sharply with the Biden administration’s previous praise for Hertz’s investment in EVs.

The move has been part of the president’s effort to promote widespread adoption of EVs as part of his climate agenda.

In November, the Associated Press reported on a Consumer Reports survey that found EVs from the 2021 to 2023 model years are significantly less reliable than gasoline-powered vehicles.

A whopping eighty percent less reliable, according to the AP, particularly with battery and charging systems, as well as fit issues with body panels and interiors.

Car dealers and manufacturers are reportedly also struggling to sell EVs despite using deep discounts and promotional tactics.

The market has reached a point of saturation with early adopters, a small yet enthusiastic group willing to embrace new technologies at any cost.

Consequently, widespread hesitancy persists among the general population, deterred by steep prices, increasing interest rates and inflation, all of which have led to a surplus of unsold EVs on lots, with EVs taking significantly longer to sell than gas-powered and hybrid vehicles.

READ 11 COMMENTS
  • Jack Tripper says:

    The so called Climate Change gurus are hiding the fact that the minerals that is needed to make these EV’s are just as damaging as fossil fuels. They have to mine for lithium, nickel, cobalt, aluminum, and graphite. The extraction of battery materials leaves a trail of mining with environmental degradation in it’s wake. Amnesty International reports of child labor and exploitation in the cobalt mines. Mafia Joe and the Democrats will not tell you this.

  • Clarke says:

    I’m sure the CEO will land on his feet and Hertz will be bailed out, just like the airline, car, banking, etc etc industries buy the taxpayers (against our will) like always. We’re always the one’s getting screwed over by these geniuses and corrupt criminals.

  • k says:

    take his pension

  • ONE BIG RADICAL LEFT CLUSTER***K! There is always a fool born everyday on the left!

    Ecclesiastes 10:1-3 New International Version (NIV)

    10 As dead flies give perfume a bad smell,
        so a little folly outweighs wisdom and honor.
    2 The heart of the wise inclines to the right,
        but the heart of the fool to the left.
    3 Even as fools walk along the road,
        they lack sense
        and show everyone how stupid they are.

  • Hopefully this nonsense by the Biden administration to force us to buy EVs is ending. The American people see how bad they are and just won’t buy them.

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