General Motors has signed an agreement with car rental giant Hertz Corp. to help funnel more loaner vehicles to dealerships amid the global microchip shortage.
As an enhancement to GM's existing Dealer Courtesy Transportation Program, Hertz will provide loaner vehicles to dealers at the automaker's current rate, a GM spokesperson confirmed to Automotive News. Hertz's primary focus will be providing Chevrolet Bolt customers with loaners during the recall process.
AutoForecast Solutions estimates that the global industry has lost 8.36 million vehicles from planned production because of the chip shortage. About 2.7 million of those vehicles were cut from North America production plans.
GM this month doubled its production loss forecast to 200,000 vehicles in the second half of the year. The automaker continues to pause production at assembly plants, especially those that build crossovers and sedans, to redirect chips elsewhere and has built some vehicles without certain modules.
Hertz has locations in all 50 states and Washington, D.C. Rental car companies, like dealerships, have struggled to source inventory during the chip crisis. But direct access and a GM rate through Hertz will give dealers another channel for securing loaners. The Hertz loaner vehicles are based on local market availability, the GM spokesperson said.