Stephen Scherr, CEO of rental car company Hertz, has announced his resignation from the company, effective March 31.
Scherr will also leave his position on the Board of Directors after two years, following the company’s decision to sell nearly one-third of its electric vehicles from its fleet.
In January, the company announced that it would be selling over 20,000 EVs including Teslas.
Related: Hertz Is Selling Thousands of Used Teslas for as Low as $20K
In Q4 of 2023, Hertz suffered the company’s biggest quarterly loss in three years, with a net loss of $348 million.
“We continued to face headwinds related to our electric vehicle fleet and other costs throughout the quarter,” Scherr said in an earnings report at the time. “We have taken steps to address those challenges, and heading into 2024, we are confident that our planned reduction in EVs and cost base, along with the ongoing execution of our enhanced profitability plan, will enable us to regain our operational cadence and improve our financial performance with increasing effect into 2025.”
Scherr will be replaced by Gil West, the former COO of Delta Airlines and General Motors’ Cruise self-driving car unit.
“I am 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 achieve its potential for our customers, team members and shareholders.”
The company maintained that the two will work together over the next few weeks to “ensure a smooth transition” in leadership.
Scherr joined Hertz shortly following the company’s declaration of Chapter 11 bankruptcy protection in May 2020, due to mounting debt and an unexpected halt to traveling during the Covid-19 pandemic.
Hertz was down just over 52% in a one-year period as of Monday morning.