BrightDrop has signed a new deal to supply EVs to retail giant Walmart Inc. and has expanded its supply agreement with delivery firm FedEx Corp.
see photosThe automaker began deliveries of the EV600 van last month and will add the smaller EV410 in late 2023.
General Motors Co.’s electric commercial vehicle business, Brightdrop, said on Wednesday it has signed a new deal to supply EVs to retail giant Walmart Inc and has expanded its supply agreement with delivery firm FedEx Corp.
Financial terms of the deals announced in conjunction with the Consumer Electronics Show (CES) in Las Vegas were not disclosed.
The commercial EV business is lucrative because governments around the world are pushing companies to reduce CO2 emissions, and companies such as FedEx, Amazon.com Inc and United Parcel Service Inc have pledged to move their large distribution fleets to EVs. Have given. Furthermore, EV leader Tesla Inc. has yet to enter that market.
Those big customers will be key to determining winners and losers as established automakers compete with startups to electrify the world’s package delivery system. Amazon said earlier on Wednesday that it would collaborate with Stelantis to develop cars and trucks with Amazon software in Dashboard, and deploy the automaker-made electric vans in Amazon’s delivery network.
FedEx expects to add more than 200,000 electric medium-sized delivery vehicles by 2040
GM, which announced it was entering the EV van business last January, has forecast that the US market for parcel and food delivery vehicles will exceed $850 billion by 2025.
The Detroit automaker began deliveries of the EV600 van last month and will be adding the smaller EV410 in late 2023. It will open a plant dedicated to Brightdrop vehicles in Ingersoll, Ontario, Canada, in the fourth quarter of this year.
Under the deal with GM, Walmart will reserve 5,000 of Brightdrop’s EV600 and smaller EV410 delivery vans as part of its goal to operate a zero-emissions logistics fleet by 2040, the companies said.
Walmart plans to use GM vans as part of its inhome delivery service, which on Wednesday said it was expanding rapidly. The first Brightdrop vans will be delivered in early 2023.
Meanwhile, FedEx, which began taking deliveries of 500 EVs from GM last year, is accumulating 2,000 more over the next few years and in talks to take up to an additional 20,000 after that. FedEx wants to achieve a carbon-neutral footprint for its global operations by 2040.
FedEx expects to add more than 200,000 electric medium-sized delivery vehicles by 2040, and GM’s current two designated models cover two-thirds of those needs, said Richard Smith, FedEx Express regional president of America, on a conference call. said. FedEx expects all new delivery vehicles purchased will be electric by 2030.
He said FedEx also discussed supplying GM with larger vehicles with more cargo space that would cover the company’s needs for the remaining one-third. GM chief executive Mary Barra previously said Brightdrop would offer a full-size van.
“Brightdrop’s real, they’re here now, their trucks are on the road in California to deliver packages for us,” Smith said. “That’s another reason we’re leaning towards them.”
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Executives at both FedEx and Walmart said their deals with GM are not exclusive and have spoken with other EV makers.
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