Hertz announced that it would purchase 175,000 electric vehicles from General Motors over the next five years across the Detroit-automotive company’s various brands.
Hertz said it would utilize a new partnership with GM to expand its EV rental fleet, which started with a massive purchase from Tesla nearly one year ago. Hertz, which also has struck a deal with Polestar for electric vehicles, will purchase a variety of GM products across its several brands. The rental agency explicitly mentioned that it would purchase a range of models from Chevrolet, Buick, GMC, and Cadillac, as part of the deal.
Initial deliveries of the GM vehicles to Hertz will begin with the Chevrolet Bolt EV and EUV in early 2023. However, throughout the agreement, GM will ship other vehicle types to Hertz for rental purposes. Hertz and GM stated in a joint announcement that a wide range of vehicle categories would be available, including compact and midsize SUVs, to pickups, luxury vehicles, and more.
The agreement will encompass GM’s EVs to be delivered to Hertz through 2027 as the company continues to expand the EV component of its rental fleet. Hertz estimates that by the time the 2027 terms with GM are over, drivers will have traveled more than 8 billion miles in electric vehicles.
“It’s exciting that two iconic American companies that have shaped the evolution of transportation for more than a century are coming together to redefine the future of mobility in the 21st century,” Hertz CEO Stephen Scherr said. “We are thrilled to partner with GM on this initiative, which will dramatically expand our EV offering to Hertz customers, including leisure and business travelers, rideshare drivers, and corporates.”
Since launching its EV fleet in October 2021 with a $4.2 billion sale of Model 3 and Model Y vehicles from Tesla, Hertz has grown to accumulate tens of thousands of EVs available for rent at over 500 locations across 38 U.S. states. Hertz expects 25 percent of its rental fleet to be electric by the end of 2024.
GM’s rapid electric vehicle expansion plans are expected to help grow Hertz’s electric vehicle fleet. GM plans to have an annual production capacity of 1 million EVs in North America by 2025
“Our work with Hertz is a huge step forward for emissions reduction and EV adoption that will help create thousands of new EV customers for GM,” GM CEO Mary Barra said. “With the vehicle choice, technology, and driving range we’re delivering, I’m confident that each rental experience will further increase purchase consideration for our products and drive growth for our company.”
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