Sunday, May 22, 2022

Hertz says it will buy 65,000 electric vehicles from Polestar

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Rental car company Hertz has announced plans to buy up to 65,000 electric vehicles from Polestar, a sub-brand of Volvo and its Chinese parent company Geely. The announcement follows a similar move by Hertz to purchase 100,000 Tesla vehicles in an effort to electrify its global fleet.

The new vehicles will be acquired over a period of five years. The Polestar vehicles will be available in Europe in spring 2022 and in North America and Australia by the end of 2022. Neither company has disclosed the financial terms of the deal, but the EV maker’s Polestar 2 sedan starts at $49,000, making the deal worth about $3.18 billion if Hertz pays full price for the deal. vehicles.

Hertz reported having approximately 500,000 vehicles in its global fleet last year. The car rental company escaped bankruptcy last year after the pandemic and an unsustainable amount of debt nearly destroyed its business. The company, which is more than a hundred years old, was eventually refinanced for $5.9 billion by investors led by Knighthead Capital Management and Certares Management.

Hertz now plans to electrify nearly all of its approximately 500,000 cars and vans, with the Tesla and Polestar orders making up a significant first batch. Hertz says it will initially order the Polestar 2, but that could expand to the company’s other models.

Polestar, which started as Volvo’s performance sub-brand, has grown in recent years into one of the more interesting EV companies on the market. The company – which is jointly owned by Volvo and Volvo’s parent company Geely – recently announced plans to go public by merging with a dedicated acquisition company, or SPAC. Polestar has positioned itself as a competitor to Tesla, with an emphasis on sleek, premium vehicles made from sustainable materials.

Polestar has released only two vehicles to date: the Polestar 1 and the Polestar 2, a $155,000 hybrid coupe. That lineup will grow with the introduction of the Polestar 3 SUV in 2022, the Polestar 4 compact SUV in 2023 and the Polestar 5 (née Precept) sports sedan in 2024. The company also unveiled a streamlined roadster concept, the Polestar O2.

The news that Hertz would order 100,000 Tesla vehicles helped boost the EV company’s stock prices, eventually reaching a valuation of more than $1 trillion.

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