GM will sell up to 175,000 electric cars to Hertz through 2027

General motors It has agreed to sell up to 175,000 electric vehicles to Hertz Global Over the next five years, the companies announced on Tuesday.

The deal stipulates that General Motors will begin supplying electric vehicles such as the Chevrolet Bolt EV and Bolt EUV to the car rental giant starting in the first quarter of next year. These vehicles are expected to follow newer EV models on the company’s Ultium battery technology, for example Like a Chevrolet BlazerAnd the Chevrolet Equinox and vehicles from other General Motors brands.

General Motors is expected to increase significantly Its production of fully electric cars In the coming years, as North America increases production of cars and trucks – so will the battery cells used to power them. The company plans to Reaching a production capacity of one million electric vehicles in North America and China, both, by 2025.

General Motors is the latest automaker to have such an agreement with the following Hertz company Tesla And the Pole StarVolvo powered electric car start-up. Those agreements were for 100,000 and 65,000 vehicles, respectively, making GM’s deal the largest of the three.

“Our work with Hertz is a huge step forward in reducing emissions and adopting electric vehicles that will help create thousands of new EV customers for GM,” CEO Mary Barra He said in a statement.

Hertz made an increase A fleet of electric vehicles is a priority After emerging from bankruptcy less than a year ago. The debt-laden company was an early victim of the coronavirus pandemic but has since recovered amid high demand on travel and supply chain issues. The problems led to lower stocks but higher profits for rental car fleets.

Shares of GM and Hertz were relatively unaffected by the announcement. Both were lower midday Tuesday amid a broader market pullback.

Investors have always resented automakers when they sell large quantities of vehicles to daily rental fleets. That’s because cars and trucks sold to rental companies are usually sold at a discount, with such deals used to reduce bloated inventories and increase total vehicle deliveries.

However, shareholders and analysts responded positively Automakers like Tesla Selling electric cars to Hertz, taking the move as a sign that battery-powered electric vehicles are becoming more popular.

Hertz aims to have a quarter of its fleet electric by the end of 2024, while General Motors has announced its plans exclusively. Show electric cars by 2035.