General Electric Places Largest Electric Vehicle Order in History

Strategic Insights -

General Electric Co. is set to purchase 25,000 electric vehicles by 2015, with almost half of the order coming from General Motors Co. This move underscores the company's commitment to energy-efficient technologies and positioning itself to benefit from the growing electric-car market. As part of its strategy, GE is poised to help 65,000 leasing customers convert to electric vehicles, with the potential to add $500 million in sales within the next three years.

Key Takeaways:

  • GE's order will account for at least half of its 30,000-car fleet, with the majority of vehicles being electric.
  • The purchase will include vehicles that customers can lease from GE Capital, the company's financial arm.
  • GE's portion of the order from General Motors Co. is for 12,000 vehicles, including the 2011 Chevrolet Volt.
  • The deal is expected to drive clean-energy innovation, strengthen energy security, and deliver economic value.
  • GE's power-plant equipment generates one-third of the world's electricity, and the need for vehicle-charging stations may spur demand for more power from its utility customers.
  • The order is a boost for the Chevrolet Volt, as General Motors prepares for an initial public offering after its 2009 restructuring in bankruptcy.
  • The deal is expected to help both companies, as fleet sales can drive interest from other companies.

Statistics:

  • GE plans to purchase 25,000 electric vehicles by 2015.
  • The majority of the order (12,000 vehicles) will come from General Motors Co.
  • GE's order will account for at least half of its 30,000-car fleet.
  • The deal is expected to add $500 million in sales within the next three years.
  • GE's power-plant equipment generates one-third of the world's electricity.
  • The need for vehicle-charging stations may spur demand for more power from GE's utility customers.

Sources:

  • Bloomberg News
  • General Electric Co. statement
  • 2010 Toronto Star