{"id":311002,"date":"2024-03-21T12:46:28","date_gmt":"2024-03-21T11:46:28","guid":{"rendered":"https:\/\/climatescience.press\/?p=311002"},"modified":"2024-03-21T12:46:31","modified_gmt":"2024-03-21T11:46:31","slug":"hertz-ceo-steps-down-after-catastrophic-ev-losses","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=311002","title":{"rendered":"Hertz CEO Steps Down after Catastrophic EV Losses"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Essay by Eric Worrall<\/strong><\/p>\n\n\n\n

Buy Electric, lose your job?<\/p>\n\n\n\n

\n

CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas<\/strong><\/p>\n\n\n\n

BY ERIK SCHATZKER<\/a>, DAVID WELCH<\/a>, SRIDHAR NATARAJAN<\/a> AND BLOOMBERG<\/a>
March 16, 2024 at 10:06 AM GMT+10<\/p>\n\n\n\n

Hertz Global Holdings<\/a> 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.<\/p>\n\n\n\n

Stephen Scherr, who ran Hertz for just over two years after three decades at Goldman Sachs<\/a>Group Inc., has decided to step down, the rental-car company said late Friday in a statement. It\u2019s replacing him with Gil West, the former chief operating officer of General Motors<\/a> Co.\u2019s Cruise robotaxi unit. West also will join the board of directors on April 1, according to the statement, which confirmed an earlier Bloomberg report.<\/p>\n\n\n\n

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<\/a>Inc., sending the automaker\u2019s market capitalization soaring past the $1 trillion<\/a> mark at the time.<\/p>\n\n\n\n

\u2026<\/p>\n\n\n\n

Those bets went awry last year, when Tesla slashed prices<\/a> across its lineup to keep growing vehicle sales. This hammered the resale value of used Model 3 sedans and Model Y crossovers just after Hertz had added tens of thousands<\/a> of those vehicles to its fleet.<\/p>\n\n\n\n

By December, Hertz started selling off 20,000 electric vehicles<\/a>, or about a third of its EV fleet. Germany\u2019s Sixt SE \u2014 a leading car-renter in Europe \u2014 is taking even more drastic measures, phasing Teslas out<\/a> of its fleet entirely.<\/p>\n\n\n\n

\u2026Read more: https:\/\/fortune.com\/2024\/03\/15\/ceo-steps-down-prices-following-purchase-teslas\/<\/a><\/p>\n<\/blockquote>\n\n\n\n

WUWT ran a story in January this year<\/a>, in which we predicted Hertz\u2019s impairment cost for selling used EVs would likely be a lot worse than the $12,250 loss per vehicle they allowed for. Who in their right mind would want a used EV? Especially a used rental EV, which has suffered who knows what abuse?<\/p>\n\n\n\n

Remember, any bump, knock or production fault can potentially turn an EV battery pack into a ticking time bomb, capable of napalming any house structure it is unlucky enough to be parked in, that is if it doesn\u2019t BBQ the occupants of the vehicle<\/a> while on the road.<\/p>\n\n\n\n

I guess we\u2019ll know for sure exactly how much Hertz lost on their disastrous EV gamble, when their final EV fire sale numbers are published.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

CEO steps down after being hit with expensive EV repairs and low resale prices following purchase of 100,000 Teslas<\/p>\n","protected":false},"author":121246920,"featured_media":311004,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691821977,691827742,691826344],"class_list":{"0":"post-311002","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-electric-vehicles-evs","9":"tag-hertz-global-holdings-inc","10":"tag-tesla-graveyard","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/03\/0TESLAHERTZ.webp?fit=1200%2C800&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1iUa","jetpack-related-posts":[{"id":286378,"url":"https:\/\/climatescience.press\/?p=286378","url_meta":{"origin":311002,"position":0},"title":"Hertz backpedals on rush into EV rentals: CEO says repair costs can run \u201ctwice as high\u201d","author":"uwe.roland.gross","date":"11\/03\/2023","format":false,"excerpt":"Hertz was aiming to make 25% of its fleet electric by 2024, but is finding 11% is too much. 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Hertz, meanwhile, has realized that\u00a0dumping 20,000 electric cars in January\u00a0was\u2026","rel":"","context":"In \"Electric and Hybrid Vehicle Batteries\"","block_context":{"text":"Electric and Hybrid Vehicle Batteries","link":"https:\/\/climatescience.press\/?tag=electric-and-hybrid-vehicle-batteries"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/05\/OIG-13.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/05\/OIG-13.jpeg?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/05\/OIG-13.jpeg?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/05\/OIG-13.jpeg?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":243928,"url":"https:\/\/climatescience.press\/?p=243928","url_meta":{"origin":311002,"position":5},"title":"Are electric vehicle charging stations really worth taxpayer money?\u201d","author":"uwe.roland.gross","date":"02\/09\/2023","format":false,"excerpt":"Charging at home is a favored feature of electric vehicles (EVs). But public charging stations are needed for long trips and to maximize market penetration of EVs. 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