GM to sell up to 175,000 electric vehicles to Hertz by 2027
2024 Chevrolet Blazer SS EV
GM
Synthetic engine agreed to sell up to 175,000 electric vehicles to Hertz Global for the next five years, the companies announced Tuesday.
The deal calls for GM to begin offering electric vehicles like the Chevrolet Bolt EV and Bolt EUV to the rental car giant starting early next year. Those cars are expected to be followed by newer EV models based on the company’s Ultium battery technology, such as like Chevrolet Blazer and Chevrolet Equinox.
GM is expected to increase significantly production of all-electric vehicles in the coming years, as the production of cars and trucks in North America – as well as the battery cells used to power them – increases. The company has a plan reach production capacity of 1 million EV in North America and China, each by 2025.
GM is the latest automaker to reach such an agreement with the following Hertz Tesla and Polestar, an electric vehicle startup backed by Volvo. Those deals cover 100,000 and 65,000 vehicles, respectively, making GM’s deal the largest of the three.
Hertz has increased electric vehicle fleet priority after it emerged from bankruptcy less than a year ago. The heavily indebted company was an early victim of the coronavirus pandemic but has since recovered amid soaring demand amid travel and supply chain issues. The problems have resulted in lower inventory but higher profits for rental fleets.
Traditionally, investors have been annoyed with automakers when they sell large volumes of vehicles to fleets of vehicles to hire on a daily basis. That’s because cars and trucks sold to rental companies are often sold at a discount, with such deals used to reduce bloated inventory and increase their total vehicle deliveries.
However, shareholders and analysts have responded positively to the car manufacturers like Tesla sold electric vehicles to Hertz, seeing the move as a sign that battery-powered cars were becoming more common.
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