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Hertz Global (HTZ) announced that Chief Executive Officer Stephen Sher will step down and be replaced by former Delta Air Lines (DAL) executive Gil West. The move will be effective April 1, and Mr. Shah will assist Mr. West with his transition to the role. The move comes shortly after the company stumbled on a big bet on electric vehicles.
Yahoo Finance’s Julie Hyman and Josh Lipton discuss the latest news in the video above.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Stephanie Mikulich.
video transcript
[AUDIO LOGO]
Julie Hyman: Rental car company Hertz has reshuffled its executive team, appointing Gil West as chief executive officer as Stephen Sher steps down. Mr. West is the former chief operating officer of General Motors’ Cruise Robotaxi division. The move comes after Hertz’s bet on electric cars came to nothing. By the way, he was also the chief operating officer of Delta Air Lines, or Gil West. The stock price fell about 3% in after-hours trading.
Remember, Hearts went bankrupt. Mr. Scheer took command and withdrew in November 2021. And he got serious about buying electric cars from various companies, including Tesla. However, some of these car rental companies also have a used car resale business. And that bet didn’t work out, as prices for Tesla and others fell significantly.
Josh Lipton: Yes, Tesla, as you said, they certainly made a big bet, Julie. Once Tesla decided to cut prices, Elon Musk made it clear that he was more interested in sales volume than margins, and Tesla nailed it.
Julie Hyman: Yes, that’s right. Said they emerged from bankruptcy in November 2021. At the time, the current stock price was $29 per share. The stock price closed at $7.58. This explains the collapse in stock prices. So we’ll keep watching it here and see if we hear anything directly from Gil West about strategy in the coming days.
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