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Business Observer Wednesday, Sep. 21, 2022 1 week ago

Hertz places high energy order for 175,000 electric vehicles

The deal encompasses several brands.

Hertz is about to get a big jolt.

The Lee County-based car rental giant, behind what company officials call a plan to have the “largest rental fleet of EVs in North America,” announced an agreement to order up to 175,000 Chevrolet, Buick, GMC, Cadillac and BrightDrop electric vehicles over the next five years. Hertz and GM, according to a statement, believe this plan is the largest expansion of EVs among fleet customers and “the broadest because it spans a wide range of vehicle categories and price points — from compact and midsize SUVs to pickups, luxury vehicles and more.”

The agreement will encompass electric vehicle deliveries through 2027 as Hertz increases the EV component of its fleet and GM accelerates production of EVs broadly. Over this period, Hertz estimates its customers could travel more than 8 billion miles in these EVs, the release states, saving approximately 3.5 million metric tons of carbon dioxide equivalent emissions compared to similar gasoline-powered vehicles traveling such a distance. Financial terms of the fleet agreement weren’t disclosed.

"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," Hertz CEO Stephen Scherr says in the release. "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 is investing to create the largest rental fleet of EVs in North America, with tens of thousands of EVs available for rent at 500 Hertz locations across 38 states. The company's current goal is for one-quarter of its fleet to be electric by the end of 2024. Hertz had $7.33 billion in revenue in 2021. 

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