The chief executive officer of rental car company Hertz Global Holdings Inc. is resigning after a bet on electric vehicles crumbled. Hertz doubled down on EVs in the months after Scherr took over, placing big orders with Polestar, the electric-car maker owned by China’s Geely and Sweden’s Volvo Car, and GM. The company ended up buying a small number of cars from the two companies, a spokesperson said.
Those bets went awry last year, when Tesla slashed prices 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 of those vehicles to its fleet. The company began selling approximately 20,000 of its electric vehicles toward the close of 2023, the magazine continued. “Hertz announced its EV sell-down plans in January, citing lackluster demand, costly depreciation and expensive repairs. The Estero, Florida-based company took a $245 million charge and reported its biggest quarterly loss since the pandemic,” it said.and the company began blaming the decision to “go green” with Elon Musk’s electric vehicles, Breitbart News reported. “The company is blaming its recent quarterly profits miss on Tesla’s price cuts and unexpectedly high EV repair costs, which both caused big problems due to Hertz’s decision to build a large fleet of Tesla vehicles,” the outlet sai
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