Hertz plans to order up to 175,000 EVs from GM by end of 2027
US rental car giant Hertz announced plans to purchase up to 175,000 EVs from General Motors Co over the next 5 years in a multi-billion dollar deal, as the company ramps up its ambitious efforts to shift toward a zero-emission business model and reduce dependency on fossil fuels.
Hertz aims to convert 25% of its fleet to EVs by the end of 2024 and has previously announced that it would buy up to 65,000 electric vehicles from EV maker Polestar and 100,000 Tesla EVs, mainly the Model 3.
The GM purchase order includes a wide range of EVs, including compact/ midsize SUVs, pickups, and luxury vehicles. The first deliveries are expected to take place in early 2023. Subsequent deliveries will be contingent on GM’s EV production volumes, with the automaker expecting output to increase to 1 million EVs per year by 2025.
According to Hertz, customers renting these EVs will save an estimated 3.5 million tons of tailpipe emissions compared to fuel-powered vehicles.
THE TAKEAWAY
- Hertz will have a range of GM brands to choose from, including Chevrolet, Buick, GMC, Cadillac, and BrightDrop EV brands.
- The shift towards full-electrification is gaining traction as large companies seek to minimize the environmental impact of their business operations. By the end of 2022, Amazon will start making deliveries with custom Rivian EV vans in over 100 US cities and plans to deploy 100,000 electric delivery vehicles by 2030. This is part of the company’s commitment to be net zero carbon by 2040. Leading rival Walmart is also exploring EV delivery.
