(MT Newswires) -- Stephen Scherr, CEO of Hertz Global Holdings, is stepping down from his post. Bloomberg reports that the company plans to replace him with Gil West, former COO of Cruz. The move follows a major investment in electric vehicles that has not yielded the expected results.

The company suffered considerable financial losses, particularly in the fourth quarter when it lost twice as much as analysts had forecast. A charge of $245 million was recorded, mainly due to the rapid depreciation of purchased electric vehicles, mainly Teslas, which suffered from low lease rates and high repair costs.

The private equity funds Knighthead and Centaurus, which acquired Hertz and brought it out of bankruptcy, had initially supported the strategy of investing in electric vehicles. However, Scherr's execution of this strategy has apparently led to disagreements.

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