General Motors’ BrightDrop signs agreements with Walmart and FedEx


BrightDrop, General Motors’ electric commercial vehicle business, recently announced that it has inked a new arrangement to provide EVs to Walmart Inc. and has increased its supply partnership with FedEx Corp.

The financial terms of the partnerships, which were disclosed in conjunction with the Consumer Electronics Show (CES) in Las Vegas, were not made public.

Notably, governments throughout the world have been pressuring businesses to reduce CO2 emissions. Complying with these new requirements, corporations including FedEx, Inc., and United Parcel Service Inc. have vowed to convert their vast delivery fleets to electric vehicles.

As prominent automakers are competing with startups to electrify the world's package delivery system, those huge customers will be crucial in deciding winners and losers.

Earlier this week, Amazon had announced a partnership with Stellantis to develop vehicles and trucks with Amazon software in the dashboards and to use Stellantis' electric vans in Amazon's delivery network.

Last month, the Detroit carmaker began shipping the EV600 van, with the smaller EV410 estimated to follow in late 2023. In the fourth quarter of this year, the firm will open a plant devoted to BrightDrop vehicles in Ingersoll, Ontario, Canada.

Meanwhile, Walmart will reportedly retain 5,000 of BrightDrop's EV600 as well as the smaller EV410 delivery vans under the agreement with GM as part of its objective to operate a zero-emission logistics fleet by 2040.

GM’s vans will be used by Walmart as part of its rapidly expanding in-home delivery service. The first BrightDrop vehicles are expected to be delivered as early as 2023.

Meanwhile, FedEx, which began receiving 500 electric vehicles from GM last year, has reserved another 2,000 over the next few years and is in talks to take up to 20,000 more in the years to come. This decision aligns with FedEx’s goal of becoming carbon-neutral by 2040 for all of its global operations.

According to sources, GM’s deals with FedEx and Walmart are not exclusive, and the companies have been in talks with other EV makers as well.

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