General Motors and Hertz agree to an order for 175,000 electric cars

Rental companies, like the private market, have to adapt to the market. Although companies have fleets of many thousands of vehicles, electric vehicles gain weight in companies. Agreements for the purchase of electric vehicles are becoming more common. The last to be sealed was the contract that unites General Motors and Hertz for which the rent a car company will receive up to 175,000 electric cars in the next five years. An important contract that adds to many others that have already been produced.

General Motors has ambitious plans to become one of the leading manufacturers in the global and American electrical market. With clear intentions of crossing the pond again with electric models as interesting as the Chevrolet Equinox EV, it knows that it must also expand its presence in rental channels. The agreement signed with Hertz is of the utmost importance, as it means that the Detroit brand will have to accelerate the pace of production of its increasingly extensive line of electrified products.

The signed contract contemplates almost immediate deliveries. As specified in the agreement, 175,000 electric vehicles to be delivered within a period of five years, until 2027. GM has numerous units of its brand portfolio: Chevrolet, Buick, GMC, Cadillac and BrightDrop they will be the ones that contribute vehicles to the Hertz fleet. Although similar agreements have been signed with greater volume, both companies estimate that this is the most heterogeneous order in terms of models. The offer will be varied, but always with the common denominator of electrification.

The first deliveries of the agreement will begin throughout the first quarter of 2023

The Hertz rental company estimates that its customers will be able to travel almost 13 million kilometers in a 100% sustainable way, which represents a saving of 3.5 million tons of polluting emissions. The company has more than 500 rental offices in the American territory, spread over 38 states. The objective is not only to offer new alternatives to its customers, but Hertz has set itself the ambitious goal of closing 2024 with a quarter of its fully electric vehicle fleet.

Needless to say, both parties have been delighted with the agreement. For GM it is a big push in terms of electric production. General Motors CEO Mary Barra said: “Our work with Hertz is a major step forward in reducing emissions and adopting electric vehicles that will help create thousands of new electric vehicle customers for GM. I am confident that each rental experience will further increase the purchase consideration of our products and drive the growth of our company.”

The first models to join the ranks of the rent a car company will be the Chevrolet Bolt EV and Bolt EUV. The first deliveries are scheduled for the first quarter of next year. Once GM scales production of its new EVs, as well as ramps up supply, deliveries will pick up the pace. The arrival of the new Ultium batteries will also improve the autonomy capacity of the units. By 2025, GM is expected to be able to build 1 million electric cars a year.

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