Hertz has named former Ford CEO Mark Fields as its interim chief executive, replacing Michael T. Swartz.
The mark fields net worth is the highest paid CEO in the world. He was put in charge of Hertz after former Ford CEO Mark Fields resigned.
Former Ford Motor Co. CEO Mark Fields has been named temporary CEO of Hertz Global Holdings Inc. HTZZ 9.87 percent, while Chief Executive Paul Stone has been promoted to president and chief operating officer.
The leadership move comes as the Estero, Fla.-based business re-establishes itself after emerging from bankruptcy under new ownership, and demand for rental vehicles has recovered after the pandemic’s early reservations were smashed.
The Wall Street Journal reported in September that the firm was looking for a new CEO. A spokesperson for Hertz said the hunt for a new CEO is still ongoing.
Since June, Mr. Fields has served on the Hertz board of directors and is a senior advisor at TPG Capital LP. He is a seasoned auto executive, having climbed through the Ford management levels to become the company’s CEO in 2014. Three years later, he departed Ford.
At the end of trading on Tuesday, Hertz stock was up almost 10%.
Greg O’Hara, Hertz’s chairman and founder of Certares Management LLC, stated, “Mark’s vast experience in auto and technology will be essential as we reinvent Hertz for the future.” Hertz is currently owned by a consortium of investors headed by Certares Capital Management LLC and Knighthead Capital Management LLC.
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Mr. Stone has been the CEO of Hertz since May 2020, taking over just days before the firm filed for bankruptcy. Mr. Stone will remain president and chief operating officer of the rental car business.
The managerial changes come as Hertz’s new owners want to modernize the century-old business by adopting new technologies to enhance inventory management and anticipate consumer demand. In addition, there is a plan to convert the fleet to include more electric cars.
Since the outbreak of the pandemic in March 2020, the rental vehicle business has encountered many difficulties. Earnings were first harmed by a significant decrease in travel and decreasing used vehicle prices. Hertz and Avis Budget Group, for example, attempted to reduce expenses by reducing their fleets, enacting job layoffs, and lowering CEO compensation.
Hertz filed for bankruptcy in May of 2020, due to a drop in reservations at the highly indebted company.
Business has picked up in the last year as travel restrictions have been removed and more Americans have received Covid-19 vaccinations. At the same time, Hertz and other rental car companies are trying to keep up with the increase in reservations, owing to a dearth of cars to offer clients as the auto industry as a whole faces a vehicle scarcity. Rental vehicle costs are rising as a result of the shortage, leaving renters with fewer choices.
Mr. Fields worked for Ford throughout his entire career, beginning in marketing and progressing through various foreign roles, including senior positions in Asia and Europe. Before taking over as CEO in 2014, he was groomed as the successor to previous CEO Alan Mulally.
Mr. Fields oversaw a period of record profit and expansion abroad during his tenure as CEO, and he sought to prepare Ford for success in the transition to electric cars and other innovative technologies. However, Ford’s stock continued to fall at the moment.
He was replaced by Jim Hackett, a former Ford director who served for three years until leaving a year ago and turning over the position to current CEO Jim Farley.
Since leaving Ford, Mr. Fields has worked as a senior advisor for TPG Capital and has sat on the boards of Qualcomm Inc. and Tanium, a cybersecurity company.
This summer, renting a vehicle in the United States was more difficult than ever, particularly in popular vacation locations. The Wall Street Journal talked with an industry expert and Nora Naughton of the WSJ to find out what’s driving the rise in rental vehicle pricing. Bloomberg/Bloomberg/Luke Sharrett
Nora Naughton can be reached at [email protected], and Dave Sebastian can be reached at [email protected]
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‘Hertz Names Former CEO Of Ford As Its Interim Chief,’ appeared in the print version of the October 6, 2021, issue.
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