Hertz CEO Stephen Scherr Announces Resignation After Disastrous Electric Vehicle Push

One of the largest car rental companies in the world, Hertz, is forcing its CEO out the door after his electric vehicle bet backfired and led to the company having to sell off its fleet of electric vehicles for discounted prices.

Hertz Global Holdings Inc. CEO Stephen Scherr announced he would be stepping down from the company on March 31 after being at the helm for the past two years. He will be replaced by the former Chief Operating Officer of Delta Airlines and General Motors, Gil West. 

Scherr's announcement comes after the company decided to sell 20,000 of its electric vehicles as the low demand and high repair costs made the investment untenable. Hertz aimed to have 25 percent of their fleet be comprised of electric vehicles but they have instead opted for gas-powered cars. The company's decision to move away from electric vehicles led to poor quarterly earnings and a somewhat depreciated stock price, as reported by Fox Business.

Hertz, like many American auto manufacturers, is realizing that electric vehicles are simply not ready for the mass market as the public sours on them despite the Biden administration's continued push of the supposedly 'green' alternative. Late last year, a coalition of over 3,000 auto dealers issued a letter to President Joe Biden pleading that he rethink his electric vehicle strategy as Americans struggle to afford even a new gas-powered car, let alone a costly EV, which has an average cost of $53,469. The dealer coalition is made up of businesses across the 50 states and takes aim at recent emission standards the Biden administration set at the beginning of the year that have put considerable strain on the auto industry. 

"These vehicles are ideal for many people, and we believe their appeal will grow over time," the dealers wrote, as reported by Fox News. "The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs [battery electric vehicles] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots."

"Last year, there was a lot of hope and hype about EVs," the group explained. "Early adopters formed an initial line and were ready to buy these vehicles as soon as we had them to sell. But that enthusiasm has stalled. Today, the supply of unsold BEVs is surging, as they are not selling nearly as fast as they are arriving at our dealerships -- even with deep price cuts, manufacturer incentives, and generous government incentives."

The dealers went on to explain that the standards adopted by the Environmental Protection Agency (EPA), notably those related to tailpipe emissions, were too arduous and "unrealistic based on current and forecasted customer demand." The dealers go on to explain that electric vehicles lack the necessary infrastructure, such as charging stations, to actually be on the roads.

"Mr. President, it is time to tap the brakes on the unrealistic government electric vehicle mandate. Allow time for the battery technology to advance. Allow time to make BEVs more affordable. Allow time to develop domestic sources for the minerals to make batteries," the group of dealers stated. "Allow time for the charging infrastructure to be built and prove reliable. And most of all, it allows time for the American consumer to get comfortable with the technology and make the choice to buy an electric vehicle."

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