Always more electric for rental companies. And their desire to green their parks makes the business of builders. Hertz plans to electrify almost its entire fleet of 500,000 cars and vans in several stages. After placing an order for 100,000 Tesla vehicles six months ago, the rental specialist has just set its sights on models from the Polestar car brand, the sports and high-end division of Volvo and owned by Chinese Geely.
65,000 Polestar at Hertz for five years
The Swedish manufacturer and the American rental company have indeed signed a global partnership which stipulates the purchase of a maximum of 65,000 electric vehicles for five years. The choice would initially have fallen on the Polestar 2 sedan, the competitor of the Tesla Model 3. According to the duo, their availability should begin in spring 2022 in Europe, then at the end of 2022 in North America and Australia. For Thomas Ingenlath, CEO of Polestar, this collaboration is a showcase since it “will bring the incredible experience of driving an electric car to a wider audience, meeting a wide variety of short- and long-term mobility requirements from our joint customers.”
The amount of this new mega-order has not been disclosed, but it could weigh more than 3 billion euros based on a full price order. The agreement could extend to the brand’s future vehicles. Hertz shares reportedly rose 1.75% in trading following the announcement. A little air of deja vu with Tesla, which had even entered the restricted club of companies worth more than 1,000 billion dollars on the stock market.
It is also important to remember that Hertz, a historic vehicle rental company, had placed itself at the start of the pandemic under the protection of the bankruptcy law, from which it emerged in July thanks to refinancing from investors to the tune of of $5.9 billion. The rental company, whose financial health was already weakened, had been decimated by the fall in rental car reservations following the measures taken to stem the spread of Covid-19.