Generation change at the top of Germany’s largest car rental company: CEO and major shareholder Erich Sixt (76) hands over the helm to his sons Alexander and Konstantin. After the annual general meeting on June 16, shortly before his 77th birthday, Erich Sixt is leaving the management board and will then take over the chairmanship of the supervisory board, the company announced on Monday evening in Munich. The supervisory board appointed Alexander and Konstantin Sixt as joint chairmen of the board from June 17th
The brothers take over the management of the car rental company in difficult times: Sixt suffers from it Corona crisis and in view of the uncertainties about mutations and vaccination progress, does not yet trust itself with a forecast for 2021, the company announced on Tuesday. It is not foreseeable when the demand for mobility services will pick up again and to what extent tourist trips will be possible this year. The medium and long-term effects of the pandemic, for example on people’s travel behavior or on the general economy, also remained to be seen.
The outgoing CEO Erich Sixt was “nevertheless cautiously optimistic” that the car rental company will return to a growth mode after the end of contact bans and travel restrictions.
Erich Sixt had led the company for half a century. As a 25-year-old he took over the management of the taxi company at that time with 200 rental cars in Munich for his sick father in 1969 and finally made it into a group with almost three billion euros in sales, which alternates with the French competitor Europcar as number one in Europe and in the USA growing rapidly.
Sales collapsed by almost 40 percent
Lockdowns and travel restrictions in the Corona crisis, however, caused sales to collapse last year: While group sales fell by around 39 percent to 1.53 billion euros, Sixt had to cope with a big minus in pre-tax earnings (EBIT). In the end, there was a loss of 81.5 million euros, after the group had generated a pre-tax profit of 308.2 million euros a year earlier. Analysts had expected slightly worse numbers on average.
The after-tax result from continuing operations was also clearly negative at minus 98.8 million euros, after a surplus of 225.3 million euros a year earlier. According to the announcement, the figures do not take into account the discontinued Leasing segment.
To Speculation about an entry by VW The company patriarch recently made it clear: “The company is my life. I would never sell that.” He always wanted his family to be in control of the business.
With Alexander and Konstantin, the fourth generation of the Sixt family is now taking over management of the company. The brothers studied business administration in London and Paris and have been on the board since 2015. You are responsible for the group strategy and for sales and are driving the consolidation and digital networking of classic car rental, car sharing and car subscriptions.
Until the Corona crisis, Sixt general meetings had something of family celebrations when father and sons sat on the podium and mother Regine Sixt advertised her Children’s Aid Foundation at the lectern. Because Erich Sixt always speaks freely, has his own opinion and enjoys provocation, they were also quite entertaining. Usually he also presented a new advertising idea.
It is rather uncertain that the shareholders’ meeting will take place on June 16 for the official change in staff. Erich Sixt has already experienced many serious crises since 1969 – as early as the 1973 oil crisis with a driving ban, he said he thought that would be the end of the company. However, the company boss recently emphasized that it is in good health with enough equity capital to cope with years of losses.