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mahatmakanejeeves

(61,347 posts)
Mon Mar 18, 2024, 09:52 AM Mar 2024

CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas

CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas

BYERIK SCHATZKER, DAVID WELCH, SRIDHAR NATARAJAN AND BLOOMBERG
March 15, 2024 at 8:06 PM EDT

Hertz Global Holdings Inc. is replacing its chief executive officer in the wake of a disastrous bet on electric vehicles that the company began unwinding in recent months.

Stephen Scherr, who ran Hertz for just over two years after three decades at Goldman Sachs Group Inc., has decided to step down, the rental-car company said late Friday in a statement. It’s replacing him with Gil West, the former chief operating officer of General Motors Co.’s Cruise robotaxi unit. West also will join the board of directors on April 1, according to the statement, which confirmed an earlier Bloomberg report.

Scherr, 59, joined Hertz several months after it emerged from bankruptcy and started making splashy wagers on electric vehicles. Under new owners Knighthead Capital Management and Certares Management, the rental company announced plans to order 100,000 vehicles from Tesla Inc., sending the automaker’s market capitalization soaring past the $1 trillion mark at the time.

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CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas (Original Post) mahatmakanejeeves Mar 2024 OP
That's some high stakes gambling! dchill Mar 2024 #1
He's one fart smeller alright EYESORE 9001 Mar 2024 #3
That's the price of being an early adopter of new technology bucolic_frolic Mar 2024 #2
Unsafe at any speed. dchill Mar 2024 #4
Any company that kacekwl Mar 2024 #5
I'm no businessman, but it makes sense to me for these corporations to hire CEOs from within the company. Midnight Writer Mar 2024 #6
I wonder how much the person to person car rentals have affected the big rental companies? tulipsandroses Mar 2024 #7
the only bigger risk than some entitled moron stopdiggin Mar 2024 #8
Curious to know how popular they were with customers MichMan Mar 2024 #9

EYESORE 9001

(27,578 posts)
3. He's one fart smeller alright
Mon Mar 18, 2024, 10:08 AM
Mar 2024

Whatever his compensation came to, I would‘be led the company and pulled half-baked decisions out of my ass for 1/10 the price.

kacekwl

(7,598 posts)
5. Any company that
Mon Mar 18, 2024, 10:25 AM
Mar 2024

Buys 100,000 vehicles from any manufacturer should demand additional warranty assistance from said manufacturer or no deal.

Midnight Writer

(23,079 posts)
6. I'm no businessman, but it makes sense to me for these corporations to hire CEOs from within the company.
Mon Mar 18, 2024, 10:29 AM
Mar 2024

People who have worked on the floor, who know from experience what works for the company and what doesn't, who have experienced the ups and downs of the company, who have a personal interest (other than making money) in the welfare of the company.

Would you hire a carpenter to repair your car, or hire a dentist to remove your gall bladder?

tulipsandroses

(6,237 posts)
7. I wonder how much the person to person car rentals have affected the big rental companies?
Mon Mar 18, 2024, 10:30 AM
Mar 2024

I know a few folks doing this as a side hustle. Aside from betting on Tesla, I wonder if people are choosing to use TURO over companies like HERTZ? Uber wasn’t a big competitor for taxis in the beginning. I honestly will choose an Air B n B over a hotel these days. I wonder if TURO is having that effect yet.

stopdiggin

(12,945 posts)
8. the only bigger risk than some entitled moron
Mon Mar 18, 2024, 10:31 AM
Mar 2024

driving a fashion statement - - is an entitled (and clueless) 'renter' driving the same 'bling'. - - - - - - - - -

MichMan

(13,423 posts)
9. Curious to know how popular they were with customers
Mon Mar 18, 2024, 11:47 AM
Mar 2024

The number of people who would rent one just to try one out vs those who didn't want to deal with unfamiliar recharging procedures, charger locations, and range anxiety while on vacation or a business trip.

For a short term rental, fuel savings aren't a factor.

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