General Electric Places Largest Electric Vehicle Order in History

General Electric has made a significant commitment to sustainable energy by ordering 25,000 electric vehicles from various manufacturers, including a substantial portion from General Motors, by 2015. This move not only underscores GE's dedication to energy-efficient technologies but also positions the company to benefit from the growing electric-car market. As GE's CEO, Jeffrey Immelt, noted, this order will drive clean-energy innovation, strengthen energy security, and deliver economic value.

Key Takeaways:

• General Electric will purchase 25,000 electric vehicles, with nearly half of them coming from General Motors, by 2015.
• The order is the largest such purchase in history and accounts for at least half of GE's own 30,000-car fleet.
• GE will offer leased vehicles to its customers through its GE Capital unit, providing an opportunity for mass adoption of electric vehicles.
• The company expects to see the electric-car market adding up to $500 million in sales over the next three years.
• GE is well-positioned to benefit from the electric-car market due to its production of batteries, car-charging stations, and smart-grid systems.
• The company's order will also support the development of vehicle-charging stations, potentially driving demand for more power from its utility customers.
• General Motors' portion of the order includes 12,000 vehicles, including the 2011 Chevrolet Volt.
• The deal is expected to benefit both GE and GM, as well as other companies in the electric-car market.
• GE's CEO, Jeffrey Immelt, is committed to increasing private spending on renewable-energy investments, with a focus on electric vehicles.

Statistics:

• 25,000: The number of electric vehicles GE will purchase by 2015.
• 12,000: The number of vehicles GE has ordered from General Motors, including the 2011 Chevrolet Volt.
• $500,000,000: The estimated sales from the electric-car market in the next three years.
• 30,000: The total number of cars in GE's fleet, with the electric vehicle order accounting for at least half.
• 18%: The increase in GE's research and development budget this year.
• $20,000,000,000: The amount GE is spending on research and development in the two years ending in 2012.
• 10,000+: The number of vehicles other car makers, including Nissan, Ford, and Toyota, plan to sell in the next 18 months.

Sources:

• Bloomberg News
• General Electric statement
• President Barack Obama's administration commitment to taxpayer aid for car and battery makers
• 2010 Waterloo Region Record
• GM's press release regarding the Chevrolet Volt
• 2953 Analytics in Birmingham, Mich.