Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

GE to buy 25,000 electric cars

By Aaron Smith, staff writer


NEW YORK (CNNMoney.com) -- GE said on Thursday that it will buy 25,000 electric vehicles for its fleet through 2015 in the "largest-ever" purchase of electric cars.

GE (GE, Fortune 500) will begin with a purchase of 12,000 Chevy Volts from General Motors Co. The purchases will begin in 2011, said GE.

GE has a current fleet of 30,000 vehicles which are used by GE employees to conduct their business. The conglomerate said it "will add other [electric] vehicles as manufacturers bring them to market."

GE says that because of its size and technology the company is uniquely positioned to bring the electric vehicles into the mainstream.

GE Chief Executive Jeff Immelt said the purchase will help to "move electric vehicles from anticipation to action."

"Wide-scale adoption of electric vehicles will also drive clean energy innovation, strengthen energy security and deliver economic value," he said.

GM Chief Executive Daniel Akerson described the deal with GE as "a marriage made in heaven" for both corporations."

"We're interested in [GE's] watt station, their charging stations," said Akerson. "It dovetails well with this electric vehicle [the Volt] and electric vehicle development across the automobile industry."

GE said that 15,000 of the 25,000 electric vehicles that it plans to purchase will be used to replace half of its fleet. The other 10,000 electric vehicles will be used in its Fleet Services division. That division provides business-to-business fleet financing and management for customers.

The Chevrolet Volt is expected to roll off production lines later this month.

"GE's decision to dive headfirst into the electric-drive vehicle market isn't selfless - the company stands to profit from the success of such cars," said John O'Dell, senior editor for Edmunds' GreenCarAdvisor.com.

O'Dell said that GE manufactures EV chargers, has partnered with Better Place, which owns battery exchange stations, and is a shareholder in A123 Systems (AONE), a battery maker. To top of page

Find Your Next Car
Index Last Change % Change
Dow 20,975.09 -21.03 -0.10%
Nasdaq 6,025.23 -0.27 -0.00%
S&P 500 2,387.45 -1.16 -0.05%
Treasuries 2.31 -0.02 -0.69%
Data as of 1:43am ET
Company Price Change % Change
Bank of America Corp... 23.89 -0.09 -0.38%
Ford Motor Co 11.60 0.12 1.05%
Chesapeake Energy Co... 5.47 -0.04 -0.73%
General Electric Co 29.26 -0.19 -0.65%
Advanced Micro Devic... 13.41 -0.08 -0.59%
Data as of Apr 26
Sponsors

Sections

U.S. economy started the year with sluggish growth under the new administration. But overall the U.S. economy is in solid shape. More

Chris Sacca, an investor known for his early bets on Uber and Twitter announced Wednesday that he will stop investing in startups. More

Homeowners who sold their home in the first three months of this year saw an average price gain of $44,000 from purchase, according to a new report. More