General Electric Company announced on Thursday that it has plans to buy 25,000 electric cars.
The company says that it hopes the purchase will spark a boost in demand for the electric car charging equipment it produces.
The company, which is the US’s largest conglomerate, will trade out much its current official vehicle fleet and replace it with the electric vehicles.The order will be fulfilled over the next five years and the bulk of the vehicles will come from General Motors.
In recent years General Electric has been pushing toward the green side of business. GE officials said that the hope with the move is that electric cars will become widely accepted and available, which would then boost business for its charging products.
The latest GE charging device, dubbed the WattStation, could feasibly generate up to $500 million in revenue in the next three years alone.
GE also holds a large stake in the battery-producing A123 Systems.
Senior editor for Edmunds Auto Observer, Bill Vlasic, said that the GE purchase would really help to prime the pump. He added that it would send a lot of confidence down the supply chain to auto makers like Nissan and General Motors.