Business

EV start-up Polestar signs deal to supply up to 65,000 vehicles to Hertz

  • Polestar will supply up to 65,000 EVs to rental-giant Hertz over the next five years.
  • Hertz is aiming to build the largest fleet of rental EVs in North America.
  • For Polestar, the deal is in part about introducing its EVs to potential customers.

Swedish electric vehicle maker Polestar will supply up to 65,000 vehicles to car rental giant Hertz Global over the next five years, the two companies announced Monday morning.

Hertz will begin making fully electric Polestar 2s available via its network in Europe this spring, and in North America and Australia before the end of 2022.

Polestar’s CEO said the deal is a boon for the EV start-up for reasons that go beyond the revenue it will realize from the sales.

“The partnership [with Hertz] will bring the amazing experience of driving an electric car to a wider audience” of Hertz customers, Polestar CEO Thomas Ingenlath said. “For many of them it may be the first time they have driven an EV, and it will be a Polestar.”

Polestar sold 29,000 vehicles last year.The company expects its sales pace to reach 290,000 vehicles per year by the end of 2025.

For Hertz, the deal is a significant step forward in its plan to build the largest fleet of rental EVs in North America, and one of the largest in the world.

Polestar was formed in 2017 as a joint venture between Volvo Cars and its corporate parent, Chinese automaker Geely. The company is planning to go public by the end of the second quarter via a merger with special purpose acquisition company Gores Guggenheim.

Source
cnbc

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