A Fortune 500 CEO resigned in disgrace after this electric vehicle debacle

Jeremy from Sydney, Australia, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons

Companies are hopping on the electric vehicle bandwagon pushed by Democrats.

But that turned out to be a fatal mistake for one business.

And a Fortune 500 CEO resigned in disgrace after this electric vehicle debacle.

President Joe Biden’s goal is to force the country to make the switch to electric vehicles.

One company followed his lead and went all-in on electric.

Gambling that rental car drivers would want electric vehicles cost Hertz CEO Stephen Scherr his job.

Electric vehicle disaster at Hertz

Scherr resigned from rental car company Hertz after the company’s big bet on electric vehicles went bust.

Now he’s leaving his role as CEO and resigning from the company’s Board of Directors after leading Hertz for two years.

The rental car company made the decision to reverse course on electrical vehicles in January because of low customer demand and high repair costs.

Hertz said in Securities and Exchange Commission (SEC) filings that it made a “strategic decision” to reinvest in gasoline-power vehicles and put 20,000 of its electric vehicles up for sale.

“The Company expects this action to better balance supply against expected demand of EVs,” Hertz said at the time. “This will position the Company to eliminate a disproportionate number of lower-margin rentals and reduce damage expenses associated with EVs.”

This was a major shift for Hertz after the company announced in 2021 that it planned to buy 100,000 Tesla vehicles for its fleet.

When Hertz customers were given the choice of going electric, they gave it the cold shoulder.

Hertz a partner in the Biden electric vehicle agenda

The Biden White House had praised Hertz for its commitment to going electric.

“This morning, [Hertz] was recognized by The White House for our efforts to expand access to electric vehicles across the country,” Hertz said on X. “Demand for EV rentals is growing and we’re here to help our customers electrify their travels.”

Hertz was working with the White House to ensure that federal employees had the ability to rent electric vehicles while traveling for work.

But Scherr’s commitment to electric vehicles ultimately cost him his job.

Hertz’s debacle was a sign of wider problems in the sector according to Morgan Stanley.

“The reality, however, is that electric vehicle demand today is not keeping up with the large influx of BEVs [Battery Electric Vehicle] arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots,” a Morgan Stanley analyst wrote.

Whether it’s at the rental car counter or the dealership, consumers are overwhelmingly choosing to stick with reliable gasoline-powered vehicles.

No amount of cheerleading from the Biden White House or Hertz can change the reality that consumers don’t want electric vehicles.

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