General Electric to buy 25,000 electric vehicles to spark market
The Fairfield, Conn.,-based company said its strategy represents the largest-ever electric vehicle commitment by a company or organization. The plan includes buying 12,000 Chevrolet Volts, which GM will start selling by year-end.
“Electric vehicle technology is real and ready for deployment and we are embracing the transformation with partners like GM and our fleet customers,” said Jeff Immelt, GE’s chief executive. “By electrifying our own fleet, we will accelerate the adoption curve, drive scale, and move electric vehicles from anticipation to action.
Michelle Krebs, an analyst with auto information company Edmunds.com, said that a company with such a large fleet of electric and plug-in hybrid vehicles “could certainly become an important driver behind the build-out of car charging infrastructure.”
The Volt uses a gasoline engine to create electricity and power the car when its battery charge runs down. That extends the range of the Volt to hundreds of miles and beyond pure battery electric vehicles but also classifies the car as a plug-in hybrid.
Immelt noted that GE makes technology that “touches every point of the electric vehicle infrastructure” and is involved in updating the electrical transmission grid to handle the proliferation of electric autos. GE also makes a charging station called the WattStation.
GE said it will benefit from growth in electric auto sales and estimates that its varied divisions including Capital Fleet Services, Energy and Licensing & Trading will benefit from an emerging electric vehicle market that could deliver up to $500 million in revenue over the next three years.
GM was pleased with GE’s selection of the Volt.
“GE’s commitment reflects confidence that electric vehicles are a real-world technology that can reduce both emissions and our dependence on oil. It is also a vote of confidence in the Chevrolet Volt,” said Dan Akerson, the automaker’s chief executive.
Krebs said that a large fleet will allow GM to study the use of their cars, deal with issues that crop up and lead to improvements for future generations of plug-in vehicles.
“GE's purchase will drive sales to help GM offset the vast investments it made in pioneering technologies. Automakers are unlikely to make money on new technologies out of the starting gate, but a big purchase like this helps accelerate their return on investment,” Krebs said.
GE will convert at least half of its 30,000 global fleet and will partner with its fleet leasing customers to deploy a total of 25,000 electric vehicles by 2015.
-- Jerry Hirsch
Photo: Chevrolet Volt
Credit: General Motors