Over the next five years, General GM will sell up to 175,000 electric vehicles to the rental car company.
The Chevrolet Bolt EV and Bolt EUV will be supplied by GM to the rental car giant. Those vehicles are expected to be followed by newer EV models on the company's Ultium battery technology.
As North American output of the cars and trucks increases, GM is expected to significantly increase its production of all-electric vehicles. The company will be able to produce 1 million EV in North America and China in the next ten years.
GM is the latest company to sign an agreement with a car rental company. The largest of the three deals was made by GM for 100,000 and 65,000 vehicles.
Mary Barra, CEO of GM, said in a statement that the company's work with Hertz will help create thousands of new EV customers.
Less than a year ago, the company emerged from Chapter 11 and made increasing its fleet of electric vehicles a priority. The debt-laden company was an early victim of the coronaviruses, but has since recovered. Rental car fleets have higher profits due to the problems.
The announcement didn't have much impact on the shares of GM. Both were down at the same time.
When automakers sell a lot of cars to daily rental fleets, investors don't like it. Cars and trucks sold to rental companies are usually sold at a discount in order to reduce inventories and increase deliveries.
However, shareholders and analysts have responded favorably to the idea that battery-electric cars were going to be more popular.
GM plans to exclusively offer electric vehicles by the end of the 20th century, as well as having a quarter of its fleet be electric by the end of the next decade.
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