Hertz to purchase 175000 EVs from General Motors in the next 5 years

By Anusha  | Date: September 22, 2022

Hertz to purchase 175000 EVs from General Motors in the next 5 years

As per the latest citations, American car rental company, Hertz Global Holdings inc., is steadily gearing up towards purchasing a whopping 175000 EVs from General Motors Company over the next five years to contribute its share in encouraging green mobility across the globe.

Notably, Hertz is the latest company to join the bandwagon of rental companies which are currently driving EVs demand for fleet services amid the raging surge in gas prices, to win consumer support.

However, both companies claimed that Hertz would purchase EVs from all of GM’s four primary brands including Cadillac, GMC, Buick, and Chevrolet. Furthermore, the car rental corporation would reportedly begin its purchasing spree with Chevy Bolt’s EVs starting early next year.

For those unaware, over the past few years, car rental companies all over the world have been adding EVs to their fleet to be in line with their environmental, social, and governance paradigms and keep their investors satisfied.

Elaborating on the development, Hertz’s Chief Executive Officer Stephen Scherr claimed that the company is preparing to offer General Motors EVs across all of its formats – from leisure customers and rideshare drivers to business lines, business travelers, and corporate fleets.

Jeff Nieman, who chairs the Senior Vice President for Operations at Hertz, elaborated that the purchase was a multi-billion-dollar deal. Interestingly, Hertz is known to complete its purchases via asset-backed securities, which is a structure that enables the company to raise funds at lower rates as opposed to offering its own debt as a corporate entity.

Notably, such deals are highly beneficial for automakers at a time when they are trying to expand their production capacity for plug-in cars.

On a similar scale, Hertz also made an announcement last year claiming that it would purchase close to 100000 Teslas for its fleet, although both corporations disagreed on the time taken to fulfill such huge bulk order.

Source Credits: - https://www.wsj.com/articles/hertz-to-buy-up-to-175-000-evs-from-gm-11663692337?mod=tech_lead_pos2

About Author

Anusha     ibmag.com

Anusha

As a voracious reader and thinker, employing words has always been my preferred method of narration. Anusha’s conviction that a drop of ink possesses the ability to influence even the most stubborn minds has been strengthened by completing a Master’s degree in Engl...

Read More