Hertz Global Holdings Inc. has announced a major change in leadership as CEO Stephen Scherr is set to be replaced. Scherr, who has been at the helm of Hertz for over two years, is stepping down following a costly bet on electric vehicles that led to financial losses for the company.
The decision to replace Scherr comes as Hertz began unwinding its investment in electric vehicles in recent months. In a move to steer the company back on track, Gil West, former COO of General Motors Co.’s Cruise robotaxi unit, will be taking over as the new CEO. West is set to officially join the board of directors on April 1.
The news was announced late Friday in a statement released on Bloomberg Terminal. This leadership change is part of Hertz’s efforts to recover from the repercussions of the failed electric vehicle investment and improve its financial standing.
Scherr, who previously worked as a Goldman Sachs executive, made the decision to step down from his position as CEO as the company looks towards a new chapter under the leadership of Gil West. With this change in leadership, Hertz aims to turn the tide and focus on rebuilding its reputation and financial stability in the coming months.
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