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Rental car company Hertz has announced that Stephen Sher, CEO, will resign from the company on March 31st.
Shah also plans to step down from his role on the company’s board of directors in two years, following the company’s decision to sell about a third of its electric vehicle fleet.
In January, the company announced it would sell more than 20,000 EVs, including Tesla ones.
Related article: Hertz sells thousands of used Teslas for just $20,000
In the fourth quarter of 2023, Hertz posted a net loss of $348 million, the company’s largest quarterly loss in three years.
“Throughout the quarter, we continued to face headwinds related to our electric vehicle fleet and other costs,” Shah said in an earnings call at the time. “We are taking steps to address these challenges and look forward to 2024 by continuing to execute our planned EV and cost-based reduction and profitability improvement plans to restore operational rhythm and improve profitability. Financial performance will have further implications into 2025. ”
Mr. Shah will be succeeded by Gil West, the former chief operating officer of Delta Air Lines and General Motors’ cruise self-driving car division.
“I’m excited to join Hertz and build on its extraordinary family of brands and global network,” West said in a company release. “With a 106-year history, Hertz enjoys incredible brand strength and customer loyalty, and I look forward to working with the team to realize its potential for our customers, team members, and shareholders. I am.”
The company claimed that both men will work together in the coming weeks to “ensure a smooth transition” of leadership.
Mr. Scheer joined Hertz shortly after the company declared Chapter 11 bankruptcy protection in May 2020 due to mounting debt and unexpected travel suspensions due to the COVID-19 pandemic. I joined the company.
As of Monday morning, Hertz was down more than 52% in a year.
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