In Largest Single Commitment, GE to Buy 25,000 Electric Vehicles

November 11, 2010

In a global push to accelerate adoption of electric vehicles and to build out EV infrastructure on a large scale, GE plans to convert half of its global fleet of cars to EVs by 2015. The purchase of 25,000 EVs for its fleet and for GE’s fleet customers, announced today, is the largest single EV commitment ever.

With GE’s technologies all along the EV chain — from renewable power generation to smart grid transformers to EV chargers — GE estimates that a wide-scale EV transformation will lead to up to $500 million in near-term business for GE.

The video below featuring GE Chairman and CEO Jeff Immelt, GM CEO Dan Akerson and FedEx Chairman, President and CEO Fred Smith (who’s an Electrification Coalition member), explains the importance of the deal — and how private industry efforts can help drive large-scale adoption of the technologies.

* Read today’s announcement

Head start: In the lead: The U.S. is poised to take the lead in rolling out EV chargers. Learn more about EV readiness and how GE is helping build-out the charging infrastructure with the consumer toolkits on our new EV website www.ecomagination.com/evready. Sources: ABI Research, April 2010; Electric Cars: A Definitive Guide from HybridCars.com

GE is converting at least half of its 30,000 global fleet as well as vehicles in its Capital Fleet Services business, which manages vehicle fleets for companies around the world.

Of the 25,000 EVs being purchased, 12,000 will be from GM, beginning with the Chevrolet Volt in 2011. Other vehicles will be added as manufacturers expand their EV portfolios.

With a tipping point now occurring in terms of EV production, charging technology, and consumer interest, the EV landscape is now focusing on what can drive the market on a large scale. For example, global charging infrastructure is set to grow exponentially over the next five years, from about 20,000 charging stations in 2010 to 3 million by 2015.

As GE Chairman and CEO Jeff Immelt said in the video above about how the charging infrastructure and fleet purchase decision fits into GE’s ecomagination strategy: “We’ve always believed that clean energy is about commercialization. It’s not a novelty.”

Added FedEx’s Fred Smith: “With more than 16.3 million vehicles in operation in 2009, the nation’s fleet can drive initial ramp-up scale in the battery industry and OEM [original equipment manufacturer] supply chains. By buying these vehicles, GE is helping ramp up production which will help lower the price of vehicles and their components and make electric vehicles more visible and acceptable to the public at large.”

Looking good: GE’s WattStation, which can cut charging times to 4-8 hours vs. level 1 charging stations that take 12-18 hours, was one of the technologies that made the 2011 CES Best of Innovations Design and Engineering awards list. The honorees will be on display at the giant Consumer Electronics Show in Las Vegas in January.

On Monday, Nov. 15, The Electrification Coalition will release the Fleet Electrification Roadmap — a comprehensive analysis of the advantages, challenges, and policies necessary to spur electric drive technology in commercial and government vehicle fleets. Read their statement about today’s news.

* Read “How GE Connects the Dots to Bring EVs to Market” on GE Reports
* Read “Where Do I Plug It In? The Five Steps to Wiring Your Home for an EV” on GE Reports
* Read more electric vehicle stories on GE Reports
* Read “Chevy Volt: Fact vs. Fiction” on Detroit Free Press

Jim O’Brien

This will deliver more of the same dismal performance for GE share owners, although it might be good for GM. It’s a political statement, not a smart business decision. The best thing for shareholders would be to sell the various divisions of GE to the highest bidders.
Parker Powell

As a part of this agreement will GE employees have the opportunity to purchase plug-in hybrid vehicles such as the Volt at low GE-negotiated price? If not, can it be arranged since GE is such a big customer of GM now?
Capt. Mike

I pulled out the diesel engine out of my 8 ton 30 foot sailboat over three years ago and converted it to electric propulsion. Since that time I have had only about $5 in maintenance costs (oil change for the Honda 2000i generator). I also use solar panels and a wind generator for charging. It has proven more reliable, cleaner and quieter than my diesel ever was. I hope GE finds that’s the case with their electric vehicle plans. I for one would never go back to diesel and am very glad I made the switch.
Granny

THIS CAR COSTS OVER $42,000? WOW! What is GE paying?
Has GM repaid the taxpayers? If so, did repayment reduce our nations debt?
Martin Hunsinger

This is a shameful move by GE, I am terribly ebmarassed by the effort. GM owes $20B still to taxpayers, battery fires, 7700 sold last year, 600 this year, the car is a bomb. Only benefit is a $10000 tax incentive to consumers, does this subsidy go to corporate personhood as well? This is a boondoggle and wag the dog effort to subsidize GM owned by the “People” now to the tune of $20B. Why would we be signed on to this when the administration is trying to incentivize behavior and GE, owning the jobs council forces the same issue.
Ted

Nice to see that the fleet managers have recognized the lower cost of ownership over time of electric vehicles. With or without the incentive these vehicles will produce savings for GE in terms of $/mile cost of ownership.

Factor in the rebates and its a no brainer. It fits with their business in selling charging stations, their commitment to the environment and focus on profits for shareholders.
TF-121

So let’s see one person comparing a 8 ton, 30 ft sailboat that uses wind most of the time. That we can compare that to a volt. I guess once the charge is gone we can raise the sail and deploy the solar panels to sail the street.
The volt will go the way that other car the EV1. Or they become fleet vehicles or rentals. Then destroyed when they don’t work. Or needs a new battery. Isn’t that going to be fun paying for almost a new car.
I’m glad my tax money is going to buying a $42,000 vehicle at a discounted price. Then forcing workers to have to use it or lose the money they would get for using their own reliable car. On to of that having to put a charging system in their house, which still has not convinced me is not a fire hazard yet.
Still I have my hopes for EVs. I’ll get a Toyota if I ever could afford one. Still it is not right to push a product which is not up to par. Verizon worker comes to me asking for help 2 months ago. His volt is dead can I help him. I said sure her is my Verizon phone to call your company, and I went back to putting my 3.5 lift in my 5.9L Jeep Grand Cherokee. When the electric company decreases my electric bill by 40% and my fixed income gets a COL increase and my taxes stop going up 3% every year. Then I will have a chance for a new car. Plus when it could hold my Barrett 99 and ammo and make it AWD. Also Carry 3 other people with same. Get me to and from my 500 mile trips we can talk. Oh wait it will have a sail and solar panels.