General Motors and Hertz Corp. have struck an agreement for the leasing group to acquire up to 175,000 Chevrolet, Buick, GMC, Cadillac, and BrightDrop battery-electric vehicles over the next five years. The supplies would begin GM supplying Chevrolet Bolt EVs and Bolt EUVs as early as Q1 2023, followed by cars and service vehicles from the GM brands, through 2027.
The financial terms of the agreement have not been revealed. A GM executive claimed in a CNBC interview that the sales would be made at closer to a “retail margin” than to a fleet discount sale price.
“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,” according to GM CEO Mary Barra, in a statement.
Hertz Corp., which controls the Hertz, Dollar and Thrifty vehicle rental brands, is similarly focused on the novelty of electric mobility. “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,” stated Hertz CEO Stephen Scherr. “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.”
Hertz previously entered into comparable agreements for Tesla and Polestar EVs as it works to expand its electric rental fleet. According to their joint statement, Hertz aims to establish the largest rental fleet of EVs in North America, targeting one-quarter of its available vehicles to be electric by the end of 2024.
General Motors also has ambitious EV plans, aiming to have all its products battery-powered by 2035.
