Harts appoints Ford CEO as interim CEO

Texas News Today

Paul Stone, Chief Executive Officer, has been moved to the role of President and Chief Operating Officer, with CEO Mark Fields as interim Chief Executive Officer.

Leadership has changed as a Florida-based company emerged from bankruptcy under new ownership and reservations were crushed early in the pandemic after demand for rental cars soared.

The Wall Street Journal reported in September that the company was in talks to appoint a new CEO. A Hertz spokeswoman said she is still looking for a permanent CEO.

Fields has been a board member of Hertz since June and is also a senior advisor to TPG Capital LP. He is a veteran in the automotive industry, surpassing Ford’s leadership ranks and in 2014 became CEO of an automotive company. He left Ford after three years.

Hertz’s share price rose nearly 12% in Tuesday’s midnight trading.

Greg O’Hara, President of Hertz and founder of Certares Management LLC, said: “Hertz is currently managed by a group of investors led by Certares and Knighthead Capital Management LLC.

Mr. Stone has been running Hearts since May 2020 and was at the top position just days before the company filed for bankruptcy protection. Stone will remain with Car Rentals as President and Chief Operating Officer.

Management changes occur when new Hertz owners overhaul a 100-year-old company, improve inventory management, and implement new software to more accurately forecast customer demand. There is also a move to shift the fleet to include more electric vehicles.

The car rental industry has faced several challenges since the pandemic broke out in March 2020. Initially, a sharp drop in travel and a fall in the value of used cars boosted earnings. Companies such as Hertz and rival Avis Budget Group have sought to reduce costs by reducing fleets, implementing workforce cuts, and reducing executive compensation.

Hearts filed for bankruptcy in May 2020. This is because companies with large debts suffered from settlement collapse.

Within the past year, business has recovered as travel restrictions are lifted and more Americans have received the COVID-19 vaccine. At the same time, Hurts and other car rental companies are struggling with increased bookings, and the wider automotive business is facing a shortage of new cars, resulting in a lack of vehicles to offer to their customers. The shortage is driving up car rental prices and giving lessees less options.

Fields spent his entire career at Ford, starting with a marketing role and visiting several overseas positions, including executives in Asia and Europe. He was originally drafted as the successor to former CEO Allen before taking over the top position in 2014.

During his tenure as CEO, Fields oversaw periods of record profits and growth overseas and was instrumental in setting Ford up for a successful transition to electric vehicles and other advanced technologies. However, Ford’s stock price continued to decline during that time.

He was replaced by then-Ford director Jim Hackett, who served for three years before retiring a year earlier, and now CEO Jim Farley.

Since leaving Ford, Fields has been a senior advisor to private equity firm TPG and has joined Qualcomm’s board of directors. Ltd.

Cyber ​​security company Tanium.

Renting a car in the United States has never been more difficult this summer, especially at a popular vacation destination. To find out what’s behind rising car rental prices, The WSJ spoke to industry analysts and Nora Naughton of the WSJ. Photo: Luke Charlotte / Bloomberg

write to Nora Naughton at [email protected] and Dave Sebastian at [email protected]

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