Hertz, one of the four largest car rental companies in the world, is replacing its CEO after the company reversed its bet on electric vehicle rentals over increasing costs.Stephen Scherr will step down as Hertz Global Holdings Inc.’s chief executive officer and member of the company’s Board of Directors effective March 31, the company announced Friday. Scherr led Hertz for just over two years after spending nearly three decades at Goldman Sachs.Scherr’s resignation comes as the car rental company struggles ...

Hertz’s CEO is stepping down following the company’s major shift on the electric vehicle front.Stephen Scherr, who joined the rental car giant in 2022, has announced his resignation, Hertz said Friday (March 15). Taking his place is Gil West, former chief operating officer of Delta Airlines and General Motors’ Cruise unit.“Gil’s success in leading over 70,000 people at Delta and orchestrating highly effective operational turnarounds will position him well to lead Hertz,” Colin Farmer, lead director of the H ...

Car rental company Hertz Global (NASDAQ: HTZ) Chief Executive Stephen Scherr has been replaced as the firm seeks to boost its business after a disastrous bet on electric vehicles (EV) that involved brands such as Tesla (NASDAQ: TSLA).In a statement on March 15, Hertz stated that Scherr had decided to step down alongside quitting his position on the board and will be replaced by Gil West, a former executive at Delta Air Lines (NYSE: DAL).“We are thrilled to have Gil join Hertz as Chief Executive Officer. Gil ...

Transportation veteran to focus on operationally-driven revenue and EBITDA growth ESTERO, Fla., March 15, 2024 /PRNewswire/ -- Hertz Global Holdings, Inc. (NASDAQ: HTZ), a leading global rental car company, today announced that Gil West, former Chief Operating Officer of Delta Airlines and GM's Cruise unit, will become Chief Executive Officer effective April 1, 2024, at which time he will join the Board. West will succeed Stephen Scherr, who has decided to step down as Chief Executive Officer and member of ...

Artur Debat/Moment via Getty Images What Makes Hertz Investable To Some Investors of Hertz Global Holdings, Inc. (NASDAQ:HTZ) have suffered tremendously in recent times. The famed car rental company has experienced severe setbacks and has left many investors wondering if down is the only direction the stock is going from here. But Hertz has dropped off so much that it now fits the criteria for inclusion in a portfolio of "falling knives" that may actually outpace the market in the future. While it's common ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Global Operations - As of December 31, 2023, Hertz operated approximately 11,400 rental locations globally across about 160 countries, making it one of the largest vehicle rental companies worldwide[37]. - The Americas RAC segment includes substantial company-operated rental locations primarily in the U.S. and Canada, while the International RAC segment has a majority of locations in Europe[41]. - As of December 31, 2023, Hertz had approximately 1,900 airport rental locations in the Americas RAC segment and approximately 1,500 in the International RAC segment[49]. - The company maintains a substantial network of franchisee locations, with 72% of franchised locations in markets covered by the International RAC segment as of December 31, 2023[41]. Revenue and Financial Performance - Off airport rental revenues comprised 34% of total worldwide vehicle rental revenues in 2023, up from 32% in 2022[47]. - Hertz Gold Plus Rewards members accounted for approximately 33% of worldwide rental transactions for the year ended December 31, 2023[80]. - Franchisee fees comprised approximately 2% of the company's worldwide vehicle rental revenues for the year ended December 31, 2023[96]. - The U.S. vehicle rental industry generated approximately $38.4 billion in estimated annual revenues for 2023, with an average of 2 million vehicles in operation[117]. - The company operated a peak rental fleet of approximately 467,000 vehicles in the Americas RAC segment and 124,600 vehicles in the International RAC segment as of December 31, 2023[101]. Fleet Management and Vehicle Strategy - The average holding period for rental vehicles sold in the Americas RAC segment was 20 months, down 20% compared to 2022, while in the International RAC segment it was 16 months, down 11%[102]. - The company’s vehicle repurchase programs limit residual risk and allow for flexibility in fleet size based on market demand[111]. - The company has introduced electric vehicles (EVs) to its fleet, allowing customers to reserve EVs in certain locations[87]. - The majority of vehicles in the fleet are non-program vehicles, exposing the company to increased residual value risk due to declining values[177]. - Recent data indicates a downward trend in used vehicle residual values, with potential further decreases expected in 2024, which could lead to substantial losses on vehicle sales[179]. - The average age of the fleet has increased, leading to higher maintenance costs and lower customer satisfaction scores, which could adversely affect financial performance[186]. Sustainability and Environmental Initiatives - The company is committed to reducing greenhouse gas emissions and enhancing sustainability through investments in electric vehicles (EVs) and charging infrastructure[136]. - The company has established partnerships with EV manufacturers such as Tesla, Polestar, and General Motors to diversify its fleet of EVs[137]. - The company is installing charging stations across its global operations to support customer adoption of EVs and expand EV infrastructure in local communities[137]. - The company’s world headquarters in Estero, Florida is LEED Gold certified, demonstrating its commitment to sustainable building practices[140]. - The company maintains ISO 14001 and ISO 45001 certifications at its Hertz European Service Center in Dublin, Ireland, ensuring adherence to environmental management and employee safety standards[140]. - The company has launched a sustainability disclosure committee in 2023 to oversee sustainability-focused disclosure processes and results[144]. - The company is focused on minimizing water use in its operations, particularly in car washes, to conserve resources[138]. - The company actively engages in recycling efforts, including the recycling of used oils, tires, and batteries, as part of its waste reduction strategy[139]. Challenges and Risks - The company faces challenges in purchasing competitively priced vehicles, which may increase acquisition costs without a corresponding rise in rental rates or residual values[184]. - Disruptions in the global supply chain, exacerbated by geopolitical conflicts and the COVID-19 pandemic, may impact vehicle production volumes and delivery schedules[189]. - The vehicle rental business is sensitive to reductions in business and leisure travel, with lingering effects from the COVID-19 pandemic still affecting demand[195]. - Manufacturer safety recalls could lead to costly repairs and service disruptions, impacting the ability to meet demand[193]. - The company’s financial condition may be adversely affected if manufacturers fail to fulfill obligations under repurchase or guaranteed depreciation programs[192]. - In December 2023, the company decided to significantly reduce the size of its global EV fleet, initiating EV vehicle dispositions expected to occur throughout 2024, resulting in a $245 million incremental net depreciation expense recognized in Q4 2023[208]. - The company faces risks related to the economics of EVs, including depreciation rates, residual values, and financing costs, which could impact the attractiveness of EVs to customers[205]. - The company is exposed to volatility in new EV pricing, which can affect the residual values of EVs in its fleet, and the timeline for building out necessary charging infrastructure[206]. Employee and Labor Relations - The company employs approximately 27,000 persons, with around 21,000 in the U.S. and 6,000 internationally as of December 31, 2023[122]. - The company offers a comprehensive benefits package for employees, including retirement savings plans and health insurance[132]. - The company anticipates renegotiating labor contracts with approximately 45% of its union-represented employees in 2024, which could lead to work stoppages if agreements are not reached[223]. - The company’s ability to attract and retain qualified employees is critical, with competition for talent particularly intense in technology roles essential for strategic initiatives[222]. Cybersecurity and IT Risks - The company has invested in cybersecurity measures to protect its information technology systems, but remains at risk of cyber attacks that could disrupt operations[226]. - The company recognizes that maintaining favorable brand recognition is essential for success, and any decline in brand perception could adversely affect its financial results[220]. - A cyber attack or failure to maintain IT infrastructure could lead to significant harm, including operational disruptions and potential litigation costs[228]. - Customer information, including loyalty account logins, is at risk of being targeted by cyber criminals, which could compromise accounts across multiple merchants[229]. - The company maintains a cyber insurance policy, but there is no assurance that it will cover all costs related to cybersecurity incidents[230]. - The business relies heavily on IT systems managed by third parties, and any significant disruptions could adversely affect operations and financial performance[231]. - Failure to maintain and upgrade IT systems may hinder business growth and lead to increased operational costs and cybersecurity risks[233]. - Misuse or theft of information could damage the company's brand and result in liabilities that negatively impact financial performance[234]. - The company faces risks related to data protection and privacy laws, particularly in the EU and California, which require secure handling of personal information[235].

It's been a volatile day for Hertz Global Holdings Inc (NASDAQ:HTZ). The stock is rebounding after earlier hitting a record low of $7.73, last seen up 8.2% at $8.88. The company reported wider-than-expected losses of $1.36 per share before the bell this morning, compared to analyst estimates of a -0.76 EPS. Analysts have yet to chime in on the results, though over in the options pits, HTZ has already seen 2.3 times the average daily options volume. So far, 13,000 calls and 10,000 puts have been exchanged, w ...

Hertz is reportedly considering layoffs after selling part of its electric vehicle fleet.The car rental giant on Tuesday (Feb. 6) reported quarterly and year-end earnings showing that it lost an adjusted $1.36 per share, missing analyst projections of a 76-cent loss.The earnings came weeks after Hertz announced it was selling 20,000 Tesla electric vehicles (EVs) — about a third of its fleet — saying that it was losing money on the cars.Speaking to Bloomberg News, CEO Stephen Scherr said Hertz plans to save ...

Hertz Global Holdings, Inc. (NASDAQ:HTZ) Q4 2023 Earnings Conference Call February 6, 2024 8:30 AM ET Company Participants Johann Rawlinson - VP, IR Stephen M. Scherr - Chair and CEO Alexandra Brooks - EVP and CFO Justin Keppy - EVP and COO Conference Call Participants Chris Woronka - Deutsche Bank Ian Zaffino - Oppenheimer & Co. Adam Jonas - Morgan Stanley John Healy - Northcoast Research Partners Stephanie Moore - Jefferies Ryan Brinkman - J.P. Morgan Elizabeth Dove - Goldman Sachs Christopher Stathoulopo ...