Hertz Global Holdings named Wayne “Gil” West as its new Chief Executive Officer effective April 1, 2024, replacing Stephen Scherr. The transition comes during a critical period for the car-rental giant, as it navigates post-pandemic recovery, challenges from its electric vehicle (EV) strategy, and broader financial stabilization efforts.
Gil West brings a formidable track record to Hertz, having served as Chief Operating Officer at Delta Airlines and GM’s Cruise autonomous-vehicle division. At Delta, he oversaw operations for over 70,000 employees, steering the airline through complex logistical and service challenges. At Cruise, he focused on emerging mobility technologies—a background that influenced the board’s expectations he can lead Hertz through its next transformation.
West’s appointment signals a renewed emphasis on core operational excellence. The board cited his history of executing turnaround initiatives as essential to launching Hertz’s “Back-to-Basics Roadmap,” which centers on three pillars: disciplined fleet management, revenue optimization, and cost efficiency.
Hertz’s aggressive pivot began with shedding roughly 30,000 EVs—over one-third of its EV fleet—due to weak demand and high maintenance and depreciation costs. Under West’s guidance, the company accelerated vehicle rotation in 2024, refreshing more than 60% of its fleet to units less than one year old. As of early 2025, over 70% of U.S. rental vehicles fall within that same age bracket.
Despite achieving Q2 2024 revenue of $2.4 billion, Hertz posted an adjusted EBITDA loss of $460 million, with GAAP net losses reaching $865 million. Encouraging signs emerged in Q1 2025: while revenue fell 13% to $1.81 billion, likely due to an 8% fleet capacity reduction, the proportion of new vehicles helped shore up long-term cost efficiencies.
Analysts remain cautious. Moody’s downgraded Hertz’s credit outlook to negative, citing persistent earnings weakness and limited operational buffer. In response, Hertz extended its revolving credit facility maturity from 2025 to 2028, improving its near-term liquidity. As of March 31, 2025, the company held roughly $1.2 billion in corporate liquidity.
Hertz’s 2025 objectives include achieving adjusted corporate EBITDA profitability by the third quarter, normalization of depreciation per unit (DPU) below $300, revenue per unit (RPU) consistently above $1,500, and direct operating costs in the low $30s per transaction day. The restructuring blueprint—dubbed “Buy Right, Hold Right, Sell Right”—aims to turn the fleet into Hertz’s competitive advantage.
Outgoing CEO Stephen Scherr led Hertz into and out of Chapter 11 bankruptcy, orchestrated ambitious EV expansion plans including the acquisition of 100,000 Teslas, but faced backlash over high EV depreciation and operational complexity. West’s arrival corrects course toward a leaner, ICE-heavy fleet strategy—retaining future EV opportunities while focusing on present-day feasibility.
West has emphasized speed and discipline: “We’re moving quickly with a best-in-class leadership team, a strategy laser‑focused on delivering sustainable returns and elevating our operational performance,” he told analysts. During Q2 2024, he noted the deployment of $1 billion in liquidity to support fleet refresh and revenue improvement initiatives.
The post-pandemic rental sector remains volatile. With used-vehicle values rebounding, Hertz’s fleet overhaul aims to capitalize on rising residuals and lower maintenance liabilities. However, costs tied to insurance, airport concessions, and macroeconomic headwinds persist.
Investor sentiment remains mixed. Despite a 90% year-to-date surge in Hertz shares in early 2025, a near 17% plunge followed the Q1 results. Bill Ackman’s Pershing Square now holds between 4% and 20% of Hertz, betting on West’s turnaround, technology investments, and even future autonomous-vehicle rental partnerships. Traditional analysts caution that stabilizing operations remains a prerequisite before pursuing bold expansions.
As CEO, West inherited a rental-car company at a strategic crossroads. His operational rigor is intended to steady the ship—refresh the fleet, cut costs, reorient revenue mix—while preserving optionality in EV and modern mobility ventures. Whether Hertz can achieve profitability by Q3 2025 will test West’s ability to transform operational momentum into a sustainable financial model.
