Hertz and GM Plot Major EV Rental Expansion

Hertz’s current goal is for one-quarter of its fleet to be electric by the end of 2024.

Hertz (NASDAQ: HTZ) and General Motors Co. (NYSE: GM) today announced an agreement whereby Hertz plans to order as many as 175,000 Chevrolet, Buick, GMC, Cadillac and BrightDrop EVs during the next five years.

The agreement covers electric vehicle deliveries through 2027 as Hertz increases EVs in its fleet as GM accelerates production of EVs broadly. Hertz estimates that its customers could travel more than 8 billion miles in these EVs, saving approximately 3.5 million metric tons of carbon dioxide equivalent emissions compared to similar gasoline-powered vehicles traveling such a distance.

Hertz said it 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.

“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. “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.”

Hertz expects to begin taking delivery of Chevrolet Bolt EVs and Bolt EUVs in the first quarter of next year. GM deliveries to Hertz are projected to increase as GM rapidly scales its EV production between 2023 and 2025 with the opening of Ultium Cells battery cell plants in Ohio, Tennessee and Michigan. GM plans annual production capacity of 1 million EVs in North America by 2025.

“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,” said Stephen Scherr, Hertz CEO.