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Discussion Starter · #1 ·
Hertz announces 175,000 electric vehicle deal with GM to expand rental fleet

Hertz announced that it would purchase 175,000 electric vehicles from General Motors over the next five years across the Detroit-automotive company’s various brands.

Hertz said it would utilize a new partnership with GM to expand its EV rental fleet, which started with a massive purchase from Tesla nearly one year ago. Hertz, which also has struck a deal with Polestar for electric vehicles, will purchase a variety of GM products across its several brands. The rental agency explicitly mentioned that it would purchase a range of models from Chevrolet, Buick, GMC, and Cadillac, as part of the deal.

Initial deliveries of the GM vehicles to Hertz will begin with the Chevrolet Bolt EV and EUV in early 2023. However, throughout the agreement, GM will ship other vehicle types to Hertz for rental purposes. Hertz and GM stated in a joint announcement that a wide range of vehicle categories would be available, including compact and midsize SUVs, to pickups, luxury vehicles, and more.

The agreement will encompass GM’s EVs to be delivered to Hertz through 2027 as the company continues to expand the EV component of its rental fleet. Hertz estimates that by the time the 2027 terms with GM are over, drivers will have traveled more than 8 billion miles in electric vehicles.

“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.”

Since launching its EV fleet in October 2021 with a $4.2 billion sale of Model 3 and Model Y vehicles from Tesla, Hertz has grown to accumulate tens of thousands of EVs available for rent at over 500 locations across 38 U.S. states. Hertz expects 25 percent of its rental fleet to be electric by the end of 2024.

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from 0-175000 units?

Lets see, Mach E Production Numbers roughly 5000/month Now. So that is 35 months of Mach E Production, 2023-2027 in 4 years, without Retail Sales.

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I give it 0% chance of happening.
Why? We know that large amounts of capacity is about to come on-line over the next couple of years, including the first Ultium plant that should start churning out battery packs in quantity very soon. The past and current production volumes aren't a good indicator of future production when all the makes are busy building capacity.
 

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Should we get be getting excited about this considering all the supply chain issues we still have going on? :unsure: I say I'm not "holding my breath" on this one because I think they are being far too optimistic :D
I think some excitement is warranted. Orders like this will get the ball moving in the right direction and it will add jobs to american factories. Things are starting off slowly, which is probably best to make sure they are not rushing things and they have all their ducks in a row. Quality should be their initial concern and then quantity will follow.
 

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I think this is a great way for potential buyers to experience living/driving with an EV for a short period of time.
Though, with current supply constraints, it may be difficult in the short term to provide sufficient numbers.
I think supplying 175k vehicles between now and 2027 shouldn't be an issue. GM has one Ultium plant coming on line more or less now and several more under construction and I believe fully complete before 2027 - I think this will be fine... I believe GM has secured it's supply chain for many years via contracting for the needed raw materials. Of course assuming Covid, Russia, etc. doesn't blow up the supply chain.
 

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Discussion Starter · #9 ·
I think supplying 175k vehicles between now and 2027 shouldn't be an issue. GM has one Ultium plant coming on line more or less now and several more under construction and I believe fully complete before 2027 - I think this will be fine... I believe GM has secured it's supply chain for many years via contracting for the needed raw materials. Of course assuming Covid, Russia, etc. doesn't blow up the supply chain.
Very True. And they're initially providing Bolt and Bolt EUV to start. And they're not Ultium based (yet).
Short term, there may be some issues.
But for delivering Cadillacs (presumably Lyriq to start) to Hertz for their luxury rental line, there will definitely be some constraints until the Ultium plant is up and running, as well as whatever else may be affecting production at Springhill.

I think GM's done a very good job doing some forward thinking and securing much of the supply chain early on. But the cumulative effects won't be seen for 2-3 years.
 

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Discussion Starter · #10 ·
Smart idea! Let people rent one to see if they like it.
I'm spending 4 days in LA in November for a long weekend before Thanksgiving.
I'm renting a Model 3, just to see how this goes.
I could use ride sharing, but I'm going to Dodger stadium for a concert, and I'd rather not deal with it.

Personally, I'd still much rather take mass transit to get places, but LA (and most of SoCal) is not built that way.
 

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Hertz is like the rich guy that puts down deposits on 10 premium EVs.
Interestingly, the "rich guy" (aka interim CEO) at Hertz who spearheaded the rental firm's foray last year acquiring battery electric vehicles for its fleet is a former CEO of Ford Motor Company, Mark Fields. Fields was Scherr's immediate predecessor at the top of Hertz' management structure.

 

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I travel a lot for work. Very few hotels have EV charging. And the ones that do only have 2-4 spots max. Until that's rectified, an EV rental won't work for me.
 

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I think some excitement is warranted. Orders like this will get the ball moving in the right direction and it will add jobs to american factories. Things are starting off slowly, which is probably best to make sure they are not rushing things and they have all their ducks in a row. Quality should be their initial concern and then quantity will follow.
This is much more than ball-moving. Rental car companies like Hertz are in the business of supplying rolling stock for the used car market. They purchase decently equipped cars from the manufacturer, rent them out to customers who inflict minimal to no damage, inspect and repair any damage after every rental, and then sell them after a year. This deal serves Hertz in several ways. It will have EVs on its rental lots for customers--mostly travelers--who want them. The vehicles themselves require minimal service. It also serves GM and the other manufacturers that sell to Hertz. Hertz will maintain meticulous records for each car and share those records with the manufactures. This will allow problems that slipped through earlier development and testing levels to be identified. It will also give each manufacturer access to the used car market with rolling stock in nearly new condition just one year after initial sale. This is huge because most auto sales are for used cars, not new cars.
 

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The Future of Lithium Production
Global EV sales more than doubled in 2021 with 6.7 million new car registrations, bringing the EV market share up to 8.6% worldwide. This growth, in addition to several administrative plans that support EVs, suggests that lithium will likely be in high demand over the next decade.
According to S&P Global, lithium demand is forecasted to hit 2 million tonnes by 2030. This demand would require production to increase by over 2,200% from 2020 levels.
As the need for lithium increases, exploration will play a key role in unlocking new sources of production, especially in countries like the United States, which are currently lagging in the lithium race.

Only a 2200% shortage of 1 Vital Material needed. Want to look at Cobalt?
 

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Discussion Starter · #18 ·
This is much more than ball-moving. Rental car companies like Hertz are in the business of supplying rolling stock for the used car market. They purchase decently equipped cars from the manufacturer, rent them out to customers who inflict minimal to no damage, inspect and repair any damage after every rental, and then sell them after a year. This deal serves Hertz in several ways. It will have EVs on its rental lots for customers--mostly travelers--who want them. The vehicles themselves require minimal service. It also serves GM and the other manufacturers that sell to Hertz. Hertz will maintain meticulous records for each car and share those records with the manufactures. This will allow problems that slipped through earlier development and testing levels to be identified. It will also give each manufacturer access to the used car market with rolling stock in nearly new condition just one year after initial sale. This is huge because most auto sales are for used cars, not new cars.
So theoretically buy 2025-6, we should have a decent amount of used EV's hitting the market.
It think it's a smart way to build adoption in the masses.

It's a smart idea, not just for GM but for all other companies selling EVs.

Plus, it has the added benefit of adding new charging stations are rental facilities.
 

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So theoretically buy 2025-6, we should have a decent amount of used EV's hitting the market.
It think it's a smart way to build adoption in the masses.

It's a smart idea, not just for GM but for all other companies selling EVs.

Plus, it has the added benefit of adding new charging stations are rental facilities.
Yes, all that.
 

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This is much more than ball-moving. Rental car companies like Hertz are in the business of supplying rolling stock for the used car market. They purchase decently equipped cars from the manufacturer, rent them out to customers who inflict minimal to no damage, inspect and repair any damage after every rental, and then sell them after a year. This deal serves Hertz in several ways. It will have EVs on its rental lots for customers--mostly travelers--who want them. The vehicles themselves require minimal service. It also serves GM and the other manufacturers that sell to Hertz. Hertz will maintain meticulous records for each car and share those records with the manufactures. This will allow problems that slipped through earlier development and testing levels to be identified. It will also give each manufacturer access to the used car market with rolling stock in nearly new condition just one year after initial sale. This is huge because most auto sales are for used cars, not new cars.
The reference to get the "ball moving" was in regards to the low production numbers that we are seeing at this time. With Ground zero operational, and the future plants already under construction...this is reason to be excited and hopeful for the future of GM. We are just seeing the tip of the GM iceberg and what lies beneath, a slew of new EV cars and trucks, is going to be hard for the other OE's to match initially.
 
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