New GM Investment Speeds up Path to Autonomy
DETROIT – This March, General Motors announced a huge investment in Cruise.
GM is acquiring SoftBank Vision Fund 1’s ownership stake in Cruise at $2.1 billion. A separate $1.35 billion investment in Cruise was also made, replacing the previous 2018 commitment.
GM says, “Cruise has made self-driving cars a reality and is a leader on the pathway to commercial autonomous ridesharing and delivery, creating significant value for both GM shareholders and Cruise’s minority shareholders.”
The company now owns the majority of Cruise, the self-driving car service.
GM Chair and CEO, Mary Barra, says the investment both simplifies Cruise’s shareholder structure and allows both companies “maximum flexibility.”
The Cruise Origin was a milestone towards GM’s autonomous vehicle vision. The zero-emission electric vehicle is designed to be driven without a human vehicle operator.
Kyle Vogt, Cruise CEO, says Cruise will still remain operating as an independent company working alongside GM as a partnership.
“Cruise and GM’s continued partnership, as well as GM’s financial strength and manufacturing scale are significant enablers and key differentiators for Cruise as we accelerate our progress and enter this next phase of commercialization,” he says.
The Cruise origin is being manufactured at the Michigan at Factory ZERO plant.
GM says that in addition to the vehicles ability to reduce the world’s oil use and emissions, the self-driving vehicle will also create additional mobility options to seniors and others with driving barriers.
Last month, Cruise also launched its “Recurring Liquidity Opportunity Program.” GM says the program provides employees of Cruise “potential for long-term share price upside as well as flexibility around share liquidity.”
The goal of the Recurring Liquidity Opportunity Program is to keep Cruise competitive in the job market and allow them to continue retaining talented employees, GM says.
Source: General Motors
Published by The Business Journal, Youngstown, Ohio.