Hertz to buy 65,000 Polestar electric vehicles

Polestar CEO Thomas Ingenlath

Hertz announced it will buy up to 65,000 electric vehicles (EVs) over five years from Polestar, the Swedish all-electric car maker controlled by Volvo Car AB and its owner Zhejiang Geely Holding Group Co of China.

Hertz and Polestar did not give details on the financial terms of their “new global partnership.”

However, Bloomberg speculated that with the starting sticker price of a Polestar 2 sedan at $45,900, the deal would generate almost $3 billion of revenue if Hertz pays close to that price.

Polestar cars are currently manufactured at two facilities in China, with additional future manufacturing planned in the US.

“We are excited to partner with Polestar and look forward to introducing their premium EV products into our retail and rideshare fleets,” said Hertz CEO Stephen Scherr.

“Today’s partnership with Polestar further builds on our ambition to become a leading participant in the modern mobility ecosystem and doing so as an environmentally-forward company.

“By working with EV industry leaders like Polestar, we can help accelerate the adoption of electrification while providing renters, corporate customers and rideshare partners a premium EV product, exceptional experience and lower carbon footprint.”

Polestar has reported that it nearly tripled volumes in 2021 and anticipates more than doubling volumes again this year.

The Swedish firm expects volumes to reach 290,000 vehicles per year by the end of 2025.

Polestar previously announced its intention to list on Nasdaq New York in a proposed business combination with Gores Guggenheim, which is expected to close in the second quarter of 2022.

“Polestar is committed to accelerating the move to electric mobility with a fascinating and innovative product portfolio,” said Polestar CEO Thomas Ingenlath.

“We are delighted that Hertz has chosen Polestar as a strategic partner on their road to electrification.

“The partnership with a global pioneer like Hertz will bring the amazing experience of driving an electric car to a wider audience, satisfying a broad variety of our mutual customers’ short- and longer-term mobility requirements.

“For many of them it may be the first time they have driven an EV, and it will be a Polestar.”

Polestar is headquartered in Gothenburg, Sweden, and its vehicles are currently available and on the road in markets across Europe, North America, China and Asia Pacific.

By 2023, the company plans that its cars will be available in an aggregate of 30 markets.

About the Author

Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.