Hertz Appointed New CEO Following EV Fleet Losses
The rental car company brought in a new leader after challenges with its electric vehicle investment strategy.
Updated on Sept. 23, 2026 in Electric Vehicles
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Hertz Global Holdings Inc. appointed Gil West as its new Chief Executive Officer, replacing Stephen Scherr, who resigned after a two-year tenure. The leadership change follows financial difficulties tied to the company's electric vehicle fleet.
Why it matters
The transition occurred as Hertz grappled with the high depreciation of its electric vehicle fleet, which was heavily impacted by Tesla Inc. price cuts. This leadership shift aims to address the challenges of managing a large-scale electric vehicle investment that underperformed expectations.
Hertz originally ordered 100,000 electric vehicles from Tesla Inc. to modernize its fleet. The move faced setbacks after Tesla price cuts lowered the resale value of those vehicles, leading to planned fleet reductions.
The players
Gil West
The incoming Chief Executive Officer of Hertz who previously served as the chief operating officer of the Cruise Robotaxi unit at General Motors Co.
Stephen Scherr
The former Chief Executive Officer of Hertz who resigned from his position after serving for two years.
Hertz Global Holdings Inc.
A major car rental company that manages a global fleet and recently navigated financial headwinds regarding its electric vehicle holdings.
Tesla Inc.
A manufacturer of electric vehicles whose pricing strategies directly impacted the resale value of rental fleet assets.
The details
Hertz attempted a rapid transition to electric vehicles by placing a massive order for 100,000 Tesla units. However, consistent price cuts by the manufacturer lowered the secondary market value of these cars, significantly impacting company depreciation schedules. Consequently, the firm initiated a sale of a portion of its electric fleet to mitigate the financial burden of low demand and rapid value loss.
Timeline
April 1, 2026: Gil West officially began his term as the new Chief Executive Officer of Hertz.
The Home Front
This leadership change highlights the volatility of electric vehicle adoption for large-scale operators navigating rapid shifts in asset depreciation. It marks a broader cooling of aggressive corporate electrification plans when faced with declining resale values.
When renting vehicles for family trips, consider checking whether the rental agency offers traditional internal combustion or electric options, as fleet availability may vary significantly. Monitor your local rental inventory online to see how these broader corporate fleet adjustments affect daily pricing and vehicle selection in your area.
The takeaway
Large-scale corporate investments in new technology require careful management of asset depreciation and resale market volatility. If you are tracking rental costs for household travel, be aware that changes in rental fleet composition may result in different daily rates for electric versus gas-powered models.
Further reading
Learn more about how market changes are affecting the transition to Electric Vehicles.
Source note: This article includes information reported by The Piston Show.
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