Hertz Global Holdings Inc HTZ appointed Gil West as its new CEO, replacing Stephen Scherr effective April 1, following his stint as the COO of General Motors’ autonomous driving unit Cruise.
The Transition: West’s appointment comes at a crucial time for Hertz as the company navigates through changes in leadership to enhance its operational effectiveness.
Vice Chair of Hertz Board of Directors, Tom Wagner, expressed confidence in West, citing his experience as a successful leader in operationally intensive businesses as a significant asset for the company with over 27,000 global employees dedicated to delivering exceptional customer service.
Hertz recently reported an adjusted EPS loss of $1.36 for the fourth quarter of 2024, attributing the decline to increased costs associated with its electric vehicle (EV) fleet. Despite the setback, revenue grew by 7% year-on-year to $2.18 billion.
In a strategic move to reduce costs, Hertz announced plans to sell approximately 20,000 electric vehicles, including Teslas, from its fleet due to high repair costs. The company aims to replace these EVs with combustion engine-powered cars by 2024.
Insights: West’s transition signifies a shift from the challenges faced by Cruise, which suspended its AV operations after a pedestrian accident involving an autonomous vehicle in San Francisco in October. General Motors reported an operating loss of $3.48 billion at Cruise in 2023, reflecting a concerning trend compared to the previous year.
During GM’s fourth-quarter earnings call in January, CEO Mary Barra reaffirmed the company’s commitment to Cruise, hinting at a potential relaunch without divulging a definitive roadmap. This uncertainty surrounding Cruise’s future highlights the contrasting environments that West moves between with his new role at Hertz.
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Further Reading: Tesla offers free choice of paint in China to boost sales, prompting European customers to place orders swiftly to avoid an upcoming Model Y price hike.
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