GM has reportedly reached a deal with Hertz to sell them 175,000 EVs over the next 5 years.
The deal is meant to drive broader EV adoption.
General Motors is teaming up with Hertz to expand the number of electric vehicles available on the rental car company’s platform. GM announced it will sell 175,000 EVs to Hertz over the next five years, a deal that the companies are calling the largest of its kind yet.
The new EVs will come from all of GM’s brands, including Chevrolet, GMC, Cadillac, Buick, and BrightDrop, the automaker’s commercial vehicle division. The announcement follows a similar move by Hertz to purchase 100,000 vehicles from Tesla and 65,000 EVs from Polestar.
The first vehicles, a batch of Chevy Bolt EV and Bolt EUVs, will be delivered to Hertz beginning in the first quarter of 2023, GM said. Vehicle deliveries will continue until 2027, at which point Hertz estimates that its customers could travel more than 8 billion miles in these EVs, “saving approximately 3.5 million metric tons of carbon dioxide equivalent emissions compared to similar gasoline-powered vehicles traveling such a distance.”
Neither company disclosed the financial terms of the deal, and given the disparity in pricing for GM’s models — the Chevy Bolt EV starts at under $30,000 while the GMC Hummer EV sells for over $108,000 — it would be difficult to estimate the exact amount.
Hertz reported having around 500,000 vehicles in its global fleet last year. The rental car company escaped bankruptcy last year after the pandemic, when an unsustainable amount of debt nearly devastated its business. Hertz now plans to electrify nearly all of its cars and vans, with the GM, Tesla, and Polestar orders comprising a significant first chunk. The company’s current goal is for one-quarter of its fleet to be electric by the end of 2024.