Investment for a stake in GM’s venture

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June 1, 2018

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Investment for a stake in GM’s venture

Source: AFP | 00:01 UTC+8 June 1, 2018 |

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Japanese telecom giant SoftBank will invest US$2.25 billion in General Motors’ autonomous car program in exchange for a stake in the venture, GM said yesterday.

The infusion of cash is a vote of confidence in the big US automaker, which is competing with other carmakers and technology companies to introduce autonomous cars globally.

The investment from the SoftBank Vision Fund in the GM Cruise Holdings will be executed in two stages, with the first US$900 million coming after the transaction is finalized and another US$1.35 billion once GM vehicles are ready for commercialization.

GM has said it plans to commercialize its Cruise program in 2019 through ridesharing.

“Our Cruise and GM teams together have made tremendous progress over the last two years,” said GM CEO Mary Barra.

“Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion.”

In exchange for the investment, SoftBank will hold a 19.6 percent stake in GM Cruise.

“GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion,” said Michael Ronan, managing partner of SoftBank Investment Advisors.

“We ... are thrilled to help them lead a historic transformation of the automobile industry.”

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Investment for a stake in GM’s venture

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