Hertz plans to order up to 175,000 General Motors Co. electric vehicles (EVs), including models from Chevrolet, Buick, GMC, Cadillac, and BrightDrop, over the next five years. The partners believe the plan is the largest expansion of EVs among fleet customers and the broadest because it spans a wide range of vehicle categories and price points—from compact and midsize SUVs to pickups and luxury vehicles—for deliveries through 2027.

The deal enables Hertz to increase the EV component of its fleet and GM to accelerate the production of EVs broadly. Over this period, Hertz estimates that its customers could travel more than 8 billion mi (12.9 billion km) in the GM EVs, saving about 3.5 million t (3.8 million ton) of CO2 equivalent emissions compared to similar gasoline-powered vehicles traveling that distance.

“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. The initiative “will dramatically expand our EV offering to Hertz customers, including leisure and business travelers, rideshare drivers, and corporates.”

Hertz is investing to create the largest rental fleet of EVs in North America, with tens of thousands of them available at 500 Hertz locations across 38 U.S. 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 in a sales boost for that duo.

GM deliveries to Hertz are projected to increase as GM rapidly scales its EV production between 2023 and 2025, driven by the opening of Ultium Cells battery cell plants in Ohio, Tennessee, and Michigan. GM plans an annual production capacity of 1 million EVs in North America by 2025. For the Hertz announcement, GM highlighted the Chevrolet Blazer EV, Equinox EV, and Silverado EV, as well as the BrightDrop Zevo commercial van.

The GM deal is just the latest in the Hertz drive to electrify its fleet.

In April, Hertz and Polestar announced a global partnership that includes purchasing up to 65,000 EVs over five years, with availability beginning in Spring 2022 in Europe and late 2022 in North America and Australia. Hertz is initially ordering the Polestar 2, highlighting its leading in-car technology including the world’s first infotainment system powered by Android Automotive OS with Google built-in for the premium EV segment.

The Polestar agreement includes forthcoming models such as the Polestar 3 electric SUV, which will have its world premiere in October. In addition, Hertz is adding the Polestar 1 electric performance hybrid to its Dream fleet to allow customers to experience first-hand the out-of-production high-performance plug-in hybrid sports GT.

The Polestar deal builds on Hertz’s announcement in October 2021 to offer its customers the largest EV rental fleet in North America and one of the largest in the world. This included an initial order of 100,000 Teslas by the end of 2022 and a new EV charging infrastructure across the company’s global operations.

Beginning in late 2021, customers were able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in major U.S. markets and select cities in Europe. Hertz also is installing thousands of chargers throughout its network, but customers who rent a Tesla Model 3 also have access to 3000 Tesla supercharging stations throughout the U.S. and Europe.

As part of Hertz’s commitment “to lead the future of mobility,” in February it also announced an investment in UFODrive, which is said to be the first all-digital, all-electric car rental service controlled from an app.

The startup’s advanced e-mobility SaaS (software-as-a-service) platform makes transitioning to electric vehicles easy for both customers and fleet providers—delivering lean operations, lower energy costs, better charging, and optimal fleet utilization using advanced AI tools. UFODrive’s technology delivers a two-minute “arrive and drive” entirely digital EV customer experience.

UFODrive’s Series A financing round was co-led by Hertz and Certares, in partnership with Knighthead Capital Management, and included participation from existing investors. Hertz Senior Vice President of Strategy, Jayesh Patel, and Venture Lead at Certares, Chantal Noble Haldorsen, will join the UFODrive board.