Eco-conscious vehicle renters can soon expect to see EVs from GM brands Buick, Chevrolet, Cadillac, GMC and even commercial delivery unit BrightDrop at Hertz rental locations.
The car rental giant said Tuesday it plans to order up to 175,000 electric vehicles from General Motors over the next five years, with first deliveries of Chevy Bolt EVs and EUVs expected to begin in the first quarter of 2023. Given GM's extensive upcoming electric vehicle lineup, everything from compact cars to SUVs to pickup trucks to luxury vehicles will be available for rent through Hertz by 2027. Notably, GM's new commercial EV unit BrightDrop will make its Zevo 600 van available to Hertz.
The GM order is the latest in a string of deals aimed at boosting Hertz's EV portfolio.
Hertz has previously signed deals with Polestar and Tesla to order up to 65,000 and 100,000 EVs, respectively, in service of its goal to have 25% of its fleet be electric by the end of 2024. The scale of this deal is much larger and an indicator of GM's production plans.
Historically, automakers haven't flaunted purchase agreements with daily rental fleets since the cars, trucks and SUVs are typically sold at a discount. However, the market has treated other recent EV fleet deals differently perhaps because it's considered a bullish sign for electric vehicles. The Tesla-Hertz partnership, for instance, was received positively by investors.
Shares of GM are down 5.77% to $39. Hertz shares dropped 2.76% to $17.98.
"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,” said GM chair and CEO Mary Barra in a statement. “With the vehicle choice, technology and driving range we’re delivering, I'm confident that each rental experience will further increase purchase consideration for our products and drive growth for our company."
After initial deliveries of Chevy Bolts next year, GM deliveries to Hertz are expected to increase rapidly alongside GM's production increases between 2023 and 2025, when GM's Ultium Cells battery cell plants in Ohio, Tennessee and Michigan are expected to open. GM has said it is planning for an annual production capacity of 1 million EVs in North America by 2025.