According to media reports, the managing directors and brothers Alexander (left) and Konstantin Sixt (right) are said to have a harsh working atmosphere at Sixt. Gettyimages
The car rental company Sixt is facing fundamental changes at the board level, which are likely to bring challenges despite record profits.
The sudden departure of Chief Commercial Officer (CCO) James Adams increases uncertainty in the company. In addition, the contract of CFO Kai Andrejewski will soon expire, reports “Wirtschaftswoche”.
The authoritarian leadership style of the managing directors and brothers Alexander and Konstantin Sixt is also likely to be criticized. According to employees, the atmosphere in the company is said to be characterized by tension, as the magazine reports.
Germany’s leading car rental company Sixt is facing fundamental changes – despite ongoing record profits. Most recently, the sudden departure of James Adams, a former top manager at Booking.com, caused a stir. The latest developments not only raise questions about leadership, but could also impact the company’s long-term strategic direction, the reported “Business Week”. A Sixt spokeswoman told “Wirtschaftswoche”: “We are currently in trusting discussions with James Adams about the future strategic direction.”
Adams, who drove the company’s international growth and digitalization, was recently appointed to Sixt’s board of directors. But according to the media report, he has now left the company. But his departure is unlikely to be the only one. The contract of CFO Kai Andrejewski is also set to expire soon and has not yet been extended, according to “Wirtschaftswoche”. A Sixt spokeswoman told the magazine that “very positive” discussions about a contract extension were currently being held with Andrejewski.
The mood should be tense
According to the report, the mood within the company is noticeably tense. Employees would criticize the “authoritarian leadership style” of the brothers Alexander and Constantin Sixt. The way we deal with employees, but also with senior positions, has led to a major change at management level. Key positions such as the head of the German-speaking market and the US boss would have to be filled.
Sixt told “Wirtschaftswoche”: The fluctuation rate had “decreased in comparison to 2023 and 2020”. In addition, the average length of service in top management is over eleven years. In middle management at least nine years.
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The working atmosphere should be characterized by pressure
Reports of a working atmosphere characterized by pressure and uncertainty have worsened the internal atmosphere. The Sixt managing directors Alexander and Konstantin Sixt, who took over the company in 2010, are said to be even more authoritarian than their father Erich Sixt.
Additionally, as car rental companies have experienced significant growth in recent years, efforts to increase their reliance on electric vehicles are facing challenges. Customer resistance and the planned expansion of the vehicle fleet could bring financial uncertainty. In particular, the brothers’ different personalities could make it more difficult to overcome the problems, according to the report in “Wirtschaftswoche”.
Sixt told “Wirtschaftswoche” that revised management principles had been anchored in an open, respectful and innovative working atmosphere.
The car rental company is still making record profits
However, Sixt is still in a very good financial position with large profits. But the uncertainties on the board raise questions about how the car rental company will orient itself in the future. So far, Sixt has relied on premium car brands – although the company recently announced that it would buy cars from the French company Stellantis (including Peugeot, Fiat, Opel and Citroen) in the next three years. Does this mean a departure from the previous strategy?
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It remains to be seen how Sixt will respond strategically to these internal challenges and whether the company will be able to continue its success story in an ever-changing market. The coming months will show whether Sixt can maintain its place as a leading player in the car rental industry.
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