June 17, 2024

A change of leadership in Sixt in troubled times

A change of leadership in Sixt in troubled times

Sixt sales declined significantly last year, from 2.5 billion euros the previous year to 1.5 billion euros. Before taxes, there was a minus of 81.5 million euros. After taxes, there was a small increase of 2 million euros due to private income from the rental business.

Fewer employees and rented cars

In order to cut costs, the Munich car rental company has significantly reduced its vehicle fleet, among other things. In 2020, the number of vehicles was just over 175,000; In 2019 there were about 76,000 more vehicles, for a total of roughly 251,000. According to its own data, the company was able to respond very quickly, due to the current take-back agreements with its contract partners, especially car manufacturers. Additionally, rental vehicles are only kept for six months in Sixt, which is a very short period anyway.

Additionally, the number of employees has also been greatly reduced. At the end of 2019, the company still had 8,100 employees; And at the end of 2020 there were 6,900 employees. Above all, natural fluctuations were used, as Alexander Sixt, the board member in charge of human resources, explained. The company also extensively uses the working tool for a short time, the council announced, without giving any further details.

The change is at the top

In June of this year, Eric Sixt handed management to his two sons, Alexander and Konstantin Sixt. The long-running 76-year-old CEO moves to the top of the supervisory board. He had passed retirement age by ten years. Eric Sixt said one should quit when it feels better for the company, and praised the future dual leadership. His sons have been active in the company for a long time. Alexander and Konstantin Sixt have also shared an office for years, as both have confirmed. Alexandre Sixt is responsible for corporate strategy, procurement and human resources, and his brother Constantine is sales.

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High investment in the US – no expectations

Sixt relies on business overseas – especially in the United States. Thanks to the acquisitions, the car rental company is now one of the fourth largest in the United States. They are now represented at major airport terminals such as Boston, New York’s three airports, Maui, Denver, Houston, Orlando and Las Vegas. Eric Sixt expects a big increase in demand when the situation returns to normal. If you’ve been locked up for too long, you want to enjoy your release. But if the rental business booms again quickly, it could also drive up prices if vehicles are scarce, the entrepreneur explains. He did not want to risk forecasts for this year. That would be doubtful. One relies on decisions that cannot be influenced at first.