The Hertz Corporation (NYSE: HTZ) announced the expansion of its Global EV initiative to China, making it the first global rental car company to offer electric vehicles (EVs) on three continents. Hertz now offers EVs across the US in cities including New York, Washington, DC, San Francisco, Los Angeles, and in London, United Kingdom and other cities in Europe. To help build a market for what is the first EV rental service in China, Hertz launches several new programs:
- Hertz commenced an alliance with GE Industrial Solutions China to develop a new business model to market EVs in China, which includes the co-location of electric vehicles and GE EV Infrastructure.
- Hertz signed an agreement to participate in the China (Shanghai) International EV Pilot City to propel an EV rental program, building out the infrastructure across the Jiading district of Shanghai as the starting point to make EVs accessible to corporations, local government and the general public, as well as promote the benefits of EVs.
- Hertz launches a partnership with BYD, the largest Chinese local auto brand, to combine electrical vehicle sales and leasing as a mobility solution for MNC and government agencies in metropolitan Chinese cities and to promote new energy applications to propel and further develop the EV marketplace in China.
"China has committed to rapidly expand electric vehicle travel and Hertz is committed to supporting the important EV Pilot City program," said Mark P. Frissora, Hertz Chairman and Chief Executive Officer. "Working with our existing rental car network in China and partners such as GE, we are dedicated to helping build the necessary EV infrastructure in China and to create a new transportation solution that employs the latest technology and harnesses innovations being launched in China today."
The agreements are part of a multi-layered approach to launch an EV rental program in Shanghai. Key features of the agreements include commitments from:
- Hertz and GE Industrial Solutions to co-locate electric vehicles and GE EV Infrastructure across China. The two companies will bundle EV leasing and charging facilities as a solution, which will be offered to multinational companies and government agencies to promote new energy application. Both Hertz and GE Industrial Solutions will leverage each other's services, products and client bases to go to market together as business partners.
- GE Industrial Solutions will provide end-to-end integrated EV infrastructure solutions and electrical distribution products to support this ecosystem development.
- Hertz, GE and China (Shanghai) International EV Pilot City will collaborate to accelerate the pace of EV adoption in China.
- Hertz and BYD to partner to create an EV mobility solution for MNC and government agencies in key Chinese cities. As part of this agreement, Hertz will introduce the BYD e6 into its Chinese fleet.
"GE, as a world-wide leading company is glad to respond to the Chinese government's call for support of the EV industry. It's our great pleasure to be invited to this partnership with Hertz and China international EV Zone," stated Johnny Wang, General Manager, Greater China, GE Energy Industrial Solutions, "Signing this MoU among us will bring to our integrated EV solutions based on our strengths and advantages in separate areas. Electric vehicles will be increasingly prioritized in national energy strategies around the world."
Earlier this year, Shanghai was selected as the electric vehicle international pilot city by the Chinese government and Jiading district of Shanghai as the electric vehicle international demonstration zone, with a goal of increasing public awareness and integration within the industry. Current partners include auto manufactures, energy suppliers, insurance companies and the other EV supply chain participants. Hertz is the first rental car company to sign a MoU to become a partner of the China (Shanghai) International Electric Vehicle Pilot City. The agreement supports the Twelfth Five-Year Plan objective for the promotion of EVs in China and will serve as a foundation for further innovation and development of the infrastructure.
In its first year, the Hertz Global EV initiative has grown from a vision to a market presence in more than ten cities, offering a diverse fleet of electric vehicles from manufactures like BYD Auto as well as Nissan, GM, Mitsubishi, Renault and Tesla. As the world's largest general use airport car rental brand, Hertz is uniquely positioned to introduce multiple groups of consumers – urban drivers, university students, travelers and corporations – to all-electric and plug-in hybrid vehicles. As part of its strategy, Hertz is forming partnerships with automakers, charging station providers, municipalities, NGOs, corporations and other stakeholders.
"At the Clinton Global Initiative last September, we announced a commitment to provide electric vehicle access on a global scale, an ambitious goal," commented Frissora. "In less than one year, Hertz is now the leading provider of EV mobility solutions, offering an unparalleled selection of EVs and Plug-in Hybrid Electric Vehicles (PHEVs) in cities worldwide. We are firmly committed to adding new retail and Business to Business EV car rental locations internationally as auto manufacturers ramp up EV and PHEV production over the next few years."
Hertz plans to increase its global EV presence by deploying vehicles in other countries in the coming months. Hertz Global EV will continue to leverage the company's rental and car sharing locations as bases for vehicles and charging stations, and tap into its technology – including sophisticated fleet management tools and consumer-facing GPS systems, including Hertz NeverLost in the U.S. – to help form an EV grid.
