GM considers venture-style investing is a radical step

Article by Christian A., on August 29, 2011

Just two years after General Motors’ bankruptcy restructuring, it has achieved another milestone – a $7.5 million investment in solar energy system maker Sunlogics. This means that GM Ventures gets a stake in Sunlogics, a company that produces solar charging equipment.

The investment is taken from a $200 million venture capital budget that GM is prepared to spend in more than three years to respond to worries that it would lose out to start-up firms like Tesla Motors.

This investment is actually diminutive compared to the $8 billion that GM spends annually on research and development, says Autonews.

But then, this is considered as a radical move that indicates just how committed GM is to venture-style investing. It’s impressive when you consider that one-third of GM is still owned by the U.S. government and is famous for its bureaucracy and its dislike of taking risks.

Steve Girsky, GM’s vice chairman, said that the automaker is “buying options on future r&d.” Girsky is a former New York investment banker who had pushed for the creation of GM Ventures.

He added that people are being encouraged to take risks and to examine what’s outside of GM as there are limitations to internal r&d. The other automakers that have also entered ventures include Volkswagen AG, Honda Motor Co., BMW AG, and Hyundai Motor Co.

Topics: gm, united states

If you liked the article, share on:

Comments

Recommended

An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 2017
Audi will be offering something exciting for its United Kingdom market. The company announced that it will be adding new features as standard to the A4 range. It also confirmed...
by - May 24, 2017
You guys are probably aware of the collaboration between Mercedes-Benz and Renault-Nissan. Knowing this, you would expect that both companies will come up with something impressive. Sources say that the...
by - May 24, 2017
Amongst all sports cars on the planet, which one is the world’s best-selling model? Would you have guessed that it is the Ford Mustang? According to IHS Markit’s global automotive...
by - May 24, 2017
It’s not a bird. It’s not a plane. It’s Kris Singh’s blue carbon flying machine! Time stood still for a few minutes after the extremely rare Pagani Huayra BC Macchina...
by - May 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries