A Hertz Tesla electric vehicle will be exhibited during the Hertz Corporation on the Nasdaq market area at Times Square in New York City, USA, November 9, 2021.
Brendan McDermid | Reuters
Hertz Global CEO Gil West is “encouraged” and “energetic” by prominent investor Bill Ackman, who takes up an “significant” position in the Postbankrotten rental car company, he said on Friday in an internal message to the employees respected by CNBC.
The remarks that part of a weekly CEO message to the employees to the employees will be published a considerable participation in Hertz two days after the Pershing Square by Ackman – the stocks of the car rental company during trade more than double this week and were completed on Thursday with $ 8.24 per share.
“Let me first say that I am humble, and we should all be encouraged by Bill Ackman's comments and through the strong support that he, Pershing Square Capital Management, and others who share trust in our strategy, are supplied with energy,” said West, who started in April 2024.
Hertz refused to comment on Ackman's participation in the company on Friday.
Regulatory registration showed that the Pershing Square had built up a position of 4.1% by the end of 2024. Pershing has significantly increased the position of 19.8%through stocks and swaps and Hertz became the second largest shareholder, a person who was familiar with the matter told CNBCS Scott Wapner.
The person said that the Ackman investment company had received an exception to the US security and Exchange Commission to delay the submission of the position by Wednesday, which caused them to accumulate significantly more shares.
West did not disclose Ackman's overall position in the letter, which was bankrupt for almost four years after Hertz from Chapter 11, but he described it as a “significant position” in the company.
“When I came in this company a year ago, I saw its potential – and continued to see every step of the way. There is no doubt that this trip was not easy, and the way ahead of us will not be easy either. But we did not register for it. I stay in our core business and confidently in our unique position in our unique position as one of the world's largest rental company and used car dealers.
Hertz has been a restless company for the majority of the last decade and was confronted with bankruptcy during the Covid 19 pandemic in 2020.
After its creation from Chapter 11 Insolvency Protection in 2021, the company bets especially with all -electric vehicles TeslasWhat the company cost billions after a significant decline in its residual values.
When reporting on the result of the fourth quarter of 2024 in February, it contained a loss of $ 2.9 billion for the year, which included a loss of $ 245 million in the fourth quarter for the sale of electric vehicles.
During the quarterly call, the company stated that the sale of 30,000 EVs was completed last year, which were part of the failed EV strategy, which was further shifted to its ongoing business circulation plan under West.
West's message to employees about Ackman's share of Hertz:
Team,
This was undoubtedly a busy week, both in the media and with our stock. As many of them have seen, we have attracted considerable attention after the disclosure that the prominent investor Bill Ackman has taken a significant position in our company through his Funds Pershing Square Capital Management.
Let me first tell me that I am humble, and we should all encourage ourselves from Bill Ackman's comments and energize through the strong support of him, Pershing Square Capital Management and others who share trust in our strategy. This confirmation is proof of our progress and above all the relentless effort that each of them contributes every day.
While we keep our way forward, we should be proud of the progress we have made, but also recognize that there are still considerable work in front of them. It is easy to be distracted in all of this attention. Remember, last year was fundamental. We have laid critical foundations, established new processes and changed our focus. This year it is about the execution and provision of tangible results for our customers and our shareholders. We have to get involved in our back-to-basics strategy, in particular our disciplined fleet rotation and the achievement of our North Star metrics of the DPU (depreciation per unit/vehicle) $ 1500 and doe (direct operating costs) in the low 30s. As we know, these areas will lay the foundation for Hertz's sustainable long -term success.
When I came to this company a year ago, I saw his potential clear – and saw it on every step of the way. There is no doubt that this trip was not easy, and the way before us will not be easy either. But we didn't register for simply. In our core business I remain optimistic and confident in our unique position as one of the world's largest rental car companies and used car dealers with assets and real estate all over the world. Our strength lies not only in our assets, but also in our people and our unshakable commitment to our promises.
Stay focused, disciplined and committed. If we execute what we want to achieve, the possibilities in front of us are really endless.
After all, I wish you a nice and healthy vacation. And for those in the field that support our customers during this busy holiday season, thank you for your continuing hard work and your commitment.
Gil West
Managing Director
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