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

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 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