GM’s electric utility vehicle unit signs agreements with Walmart and FedEx


An EV600 all-electric light commercial vehicle specially designed for the delivery of goods and services, built by BrightDrop, GM’s electric utility vehicle company, is seen in Detroit, Michigan, United States in this undated photograph. Brightdrop / Document via REUTERS.

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DETROIT, Jan. 5 (Reuters) – BrightDrop, an electric utility vehicle company of General Motors Co (GM.N), on Wednesday announced that it has signed a new agreement to supply electric vehicles to retail giant Walmart Inc (WMT. N) and extended its supply agreement with the delivery company FedEx Corp. (FDX.N)

Financial terms of the deals, jointly announced with the Consumer Electronics Show (CES) in Las Vegas, were not disclosed.

The commercial electric vehicle sector is attractive as governments around the world push companies to reduce their CO2 emissions, and companies like FedEx, Inc and United Parcel Service Inc (UPS.N) have pledged to shift their large delivery fleets to electric vehicles. Additionally, electric vehicle leader Tesla Inc (TSLA.O) has yet to enter this market.

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These big customers will be critical in determining winners and losers, as established automakers compete with startups to electrify the parcel delivery system around the world. Earlier on Wednesday, Amazon announced that it would work with Stellantis (STLA.MI) to develop cars and trucks with Amazon software in dashboards and deploy electric vans made by the automaker in the delivery network. ‘Amazon. Read more

GM, which announced its entry into the electric van business last January, estimated that the U.S. market for parcel and food delivery vehicles would climb to more than $ 850 billion by 2025.

The Detroit automaker began shipping the EV600 van last month and will add the smaller EV410 at the end of 2023. It will open a dedicated BrightDrop vehicle factory in Ingersoll, Ontario, Canada in the fourth quarter of this year.

As part of the deal with GM, Walmart will reserve 5,000 smaller EV600 and EV410 delivery vans from BrightDrop as part of its goal of operating a zero-emission logistics fleet by 2040, the companies said.

Walmart plans to use GM vans as part of its door-to-door delivery service, which it said on Wednesday was growing rapidly. The first BrightDrop vans will be delivered in early 2023.

Meanwhile, FedEx, which began taking delivery of 500 electric vehicles from GM last year, is reserving another 2,000 over the next few years and is negotiating to take up to 20,000 more thereafter. FedEx also aims to achieve a carbon neutral footprint for its global operations by 2040.

FedEx plans to add more than 200,000 midsize electric delivery vehicles by 2040, and GM’s two current models cover two-thirds of those needs, said FedEx Express Americas Regional President Richard Smith , during a conference call. Fedex expects that by 2030 all new delivery vehicles purchased will be electric.

FedEx also discussed GM supplying the larger vehicles with more cargo space that would meet the business needs required by the remaining third, he said. GM chief executive Mary Barra has previously said BrightDrop will offer a full-size pickup truck. Read more

“BrightDrop is real, they’re here now, their trucks are on the road for us in California to deliver packages,” Smith said. “That’s another reason we’re looking at them.”

Both FedEx and Walmart officials have said their deals with GM are not exclusive and have been in talks with other electric vehicle makers.

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Reporting by Ben Klayman in Detroit Editing by Matthew Lewis and Nick Zieminski

Our Standards: Thomson Reuters Trust Principles.


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