Mexican Media Brands
GM’s Stock Zooms as Cruise Automation Unit Lands $2.3 Billion Investment
Japan’s SoftBank Vision Fund is investing $2.3 billion in General Motors Co.’s Cruise Automation unit.
#robotics
Share
Japan’s SoftBank Vision Fund is investing $2.3 billion in General Motors Co.’s Cruise Automation unit. GM is contributing another $1.1 billion.
News of the SoftBank investment caused a GM’s stock price to surge nearly 13% to close at $42.70 on Thursday. It was the stock’s biggest one-day gain since GM emerged from bankruptcy in 2009.
Cruise Automation will use the new funding to further develop and commercialize GM’s self-driving vehicle systems. The carmaker aims to introduce driverless taxis next year in an unnamed U.S. city.
SoftBank will provide the funds in two installments, starting with $900 million in a deal that’s expected to close by the end of June. The remaining $1.4 billion will be provided when GM’s autonomous vehicles are ready for commercial deployment, according to the carmaker. The combined investments will give SoftBank Vision a nearly 20% stake in GM Cruise Holdings LLC, which oversees Cruise Automation and newly acquired lidar specialist Strobe Inc.
SoftBank’s investment values GM Cruise at $11.5 billion. SoftBank Vision is part of Tokyo-based conglomerate SoftBank Group Corp. The company also has invested in Nvidia and Uber.
GM reiterates its previously announced plans to invest $1.1 billion into self-driving vehicle systems. The carmaker says it has invested more than $500 million in the technology already this year.
GM acquired San Francisco-based Cruise Automation two years ago. The tech firm, which was launched in 2013, is testing the Chevrolet Bolt-based Cruise AV autonomous vehicle California, Arizona and Michigan.
RELATED CONTENT
-
Things to Know About Cam Grinding
By James Gaffney, Product Engineer, Precision Grinding and Patrick D. Redington, Manager, Precision Grinding Business Unit, Norton Company (Worcester, MA)
-
Mustang Changes for 2018
On Tuesday Ford unveiled—using the social media channels of actor Dwayne Johnson (this has got to unnerve some of the auto buff book editors)—the 2018 Mustang, which has undergone some modifications: under the hood (the 3.7-liter V6 is giving way to a 2.3-liter EcoBoost four, and a 10-speed automatic is available), on the dash (a 12-inch, all-digital LCD screen is available for the dashboard), at the tires (12 wheel choices), on the chassis (MagneRide damper technology is being offered with the Mustang Performance Package), and on the exterior (three new paint colors). And while on the subject of the exterior, there are some notable changes—a lower, remodeled hood, repositioned hood vents, new upper and lower front grilles, LED front lights, revised LED taillamps, new rear bumper and fascia.
-
BMW Uses Fabric Skin Again
In 2008 BMW revealed a concept vehicle that was unusual in that the body panels weren’t made from steel, aluminum or composites but, rather, a fabric that was fitted over an underlying metal frame.
