Hertz CEO Gil West on Motorsport ROI, EV Fleet Strategy, and Autonomous Vehicles

Motorsport Success and Brand Heritage

• 🏁 Hertz's motorsport team achieved historic success at Le Mans, locking out the front row with a Cadillac one-two finish.
• 💡 CEO Gil West, a self-proclaimed "gearhead," expressed immense pride in the team's performance at the historic racetrack.
• 🔑 Motorsport is deeply ingrained in Hertz's heritage, with involvement predating West's tenure and influencing his own customer experience with the brand.
• 🚗 As a company in the car business, Hertz views motorsports as central to its identity and brand connection.

Fleet Management and EV Strategy

• 📈 Hertz is experiencing year-over-year growth in travel demand, though the mix has shifted with a decrease in government travel and an increase in higher-margin leisure travel.
• ⚡ The company has rationalized its EV fleet, reducing its size and focusing deployment on areas with strong product-market fit, such as partnerships with Uber and Lyft, and off-airport rentals.
• ⚠️ West acknowledged that the entire industry may have moved too quickly on EV adoption.

Vehicle Sales and Operational Strategy

• 💰 Hertz is one of the world's largest used car dealerships, with a strategy to sell more vehicles through retail channels to improve depreciation and narrow the gap between purchase and sale prices.
• 🌐 The company offers a digitized experience for car sales, including financing and insurance, and has strong partnerships in this sector.
• 📈 Increasing residual values for vehicles provides a short-term benefit to Hertz's sales operations.

Competition and Customer Experience

• 🏢 Despite facing increased competition, Hertz is well-positioned due to its iconic brand and over 100 years of history.
• ✅ The company's focus is on operational excellence and enhancing customer experience as key differentiators.

Future of Mobility and Autonomous Vehicles

• 🚗 Hertz sees itself as a natural player in the AV space due to its scale as a large fleet manager with over half a million vehicles globally.
• 🚀 West believes autonomous vehicle deployment is happening quicker than anticipated, with commercial operations already underway in major US cities.
• 🎯 Hertz aims to be a key player in the future autonomous vehicle market.