DETROIT—Hertz Corp. plans to order up to 175,000 electric vehicles from General Motors Co. over the next five years. The landmark announcement spans a wide range of vehicle categories and price points, including luxury sedans, pickup trucks and sport utility vehicles.

The agreement will encompass deliveries through 2027 as Hertz increases the EV component of its fleet. Over this period, Hertz estimates that its customers could travel more than 8 billion miles in these vehicles, saving approximately 3.5 million metric tons of carbon dioxide equivalent emissions compared to similar gasoline-powered vehicles traveling such a distance.

“It’s exciting that two iconic American companies that have shaped the evolution of transportation for more than a century are coming together to redefine the future of mobility in the 21st century,” says Stephen Scherr, CEO of Hertz. “We are thrilled to partner with GM on this initiative, which will dramatically expand our EV offering to customers, including leisure and business travelers.”

"Our work with Hertz is a huge step forward for emissions reduction and EV adoption that will help create thousands of new customers for GM,” adds Mary Barra, CEO of GM. “With the vehicle choice, technology and driving range we’re delivering, I'm confident that each rental experience will further increase purchase consideration for our products and drive growth for our company."

Hertz plans to create the largest rental fleet of EVs in North America, with tens of thousands of EVs available at 500 locations across 38 states. The company’s goal is for 25 percent of its fleet to be electric by the end of 2024.

Hertz expects to begin taking delivery of Chevrolet Bolt EVs early next year. GM plans annual production capacity of 1 million EVs in North America by 2025.