General Motors today announced a major investment in its self-propelled unit Cruise. SoftBanks Vision Fund will invest $ 2.25 billion in GM Cruise Holdings LLC and GM will invest a further $ 1.1 billion after the agreement is signed. The investment should provide Cruise enough capital to enable the unit to be widely commercialized from 2019 onwards.
"Our Cruise and GM teams have made tremendous progress over the last two years," GM said Chairman and CEO Mary Barra . "Working with SoftBank adds another strong partner as we pursue our vision of zero falls, zero emissions and zero congestion."
"GM has made great strides in realizing the dream of fully automated driving to reduce deaths, emissions and congestion," said Michael Ronen, Managing Partner of SoftBank Investment Advisers. "The GM Cruise approach to a fully integrated hardware and software stack provides a unique competitive advantage, and we are very impressed with the progress made by the Cruise and GM teams, and we are delighted to be helping them with a historic one Transformation of the automotive industry. "
The investments are made in stages. When the transaction is completed, the Vision Fund will invest $ 900 million, and when Cruise is ready for commercial use, the fund will provide the remaining $ 1.35 billion. Upon completion of the transaction, SoftBank's Vision Fund will hold a 19.6% stake in GM Cruise
General Motors has purchased the San Francisco-based startup in 2016 for $ 581 million. Since then, General Motors is said to have operated the device largely independently. At that time, GM President Dan Ammann TechCrunch said the carmaker wanted to integrate Cruise's technology into its vehicle brand fleet as quickly as possible.
Since taking over by GM, Cruise seems to be doing well. The company had 30 self-driving test cars on the road in 2016 and later introduced a high-resolution mapping system. In 2017, the company embarked on an autonomous driving service for its San Francisco staff and later announced that its self-driving cars would arrive in New York City.
We drove 2017 in one of Cruise's self-propelled Chevrolet Bolts and found it a great taste for the future. And now that Softbanks Vision Fund and GM are throwing billions into the business, this tasty future seems closer than ever.