Hertz signs its biggest EV deal with General Motors

Hertz Global Holdings Inc (NASDAQ: HTZ) on Tuesday said it will buy 175,000 electric vehicles from General Motors Company (NYSE: GM) through 2027. Shares of both companies remained rather dull after the bell.

Hertz wants more EVs in its rental fleet

Hertz has similar agreements with Tesla and Polestar as well. The one with General Motors announced this evening, however, is much bigger than the other two. In the press release, Stephen Scherr – Chief Executive of the car rental company said:

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We’re thrilled to partner with General Motors on this initiative, which will dramatically expand our EV offering to Hertz customers, including leisure and business travellers, rideshare drivers, and corporates.

The Nasdaq-listed firm wants electric vehicles to be a quarter of its fleet by the end of 2024.

According to Wall Street, it’s worth buying Hertz stock as it has upside to $28.50 a share on average.

What’s in it for General Motors?

General Motors will begin deliveries in the first quarter of 2023. It’ll start with the likes of Chevrolet Bolt (EV and EUV) and extend to newer models under all of its brands later on. CEO Mary Barra said:

Our work with Hertz is a huge step forward for emissions reduction and EV adoption that’ll help create thousands of new electric vehicles’ customers for General Motors and drive growth for our company.

The Detroit automaker is committed to producing electric vehicles only by 2035. Manufacturing capacity for EVs, it forecasts, will hit 1 million in North America over the next three years.

Last month, General Motors reinstated dividend and boosted its stock repurchase programme. (read more)