by Donald Wood
Last updated: 10:13 AM ET, Wed September 21, 2022
Hertz and General Motors announced a new deal for the car rental company to purchase up to 175,000 Chevrolet, Buick, GMC, Cadillac and BrightDrop electric vehicles (EVs) over the next five years.
Hertz and GM said the plan is the largest expansion of EVs among fleet customers, as it includes various vehicle types, 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. Over this period, the car rental company estimates customers could travel more than eight billion miles in the EVs, saving approximately 1.8 million metric tons of carbon dioxide equivalent emissions.
"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 said. "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 looking to create the largest rental fleet of EVs in North America, with tens of thousands of EVs available for rent at 500 locations across 38 states. The company's goal is for 25 percent of its fleet to be electric by the end of 2024.
Hertz expects to begin taking delivery of Chevrolet Bolt EVs and Bolt EUVs in the first quarter of next year. GM plans annual production capacity of one million EVs in North America by 2025.
"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," GM CEO Mary Barra said. "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."
In August, data from the Bureau of Labor Statistics' Consumer Price Index found that car rental prices jumped 48 percent from July 2019 to July 2022, which is much higher than the seven-percent hotel price increase over the same period and the 16-percent airfare cost increase.
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