GM and Nikola Partners to Make Electric Pickup Trucks
General Motors is taking a stake in electric vehicle maker Nikola Corp. in a deal that will eventually deliver US$4 billion in benefits to GM as it commercializes its EV technology.
The partnership, a 10-year agreement, will ultimately reduce costs for each company as GM pursues its all-electric vehicle strategy.
“This strategic partnership with Nikola, an industry leading disrupter, continues the broader deployment of General Motors’ all-new Ultium battery and Hydrotec fuel cell systems,” said GM CEO Mary Barra. “We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability.”
The recently announced deal allows Nikola to exchange US$2 billion in newly issued stock for services and access to GM’s parts and components. Nikola has yet to make any of the heavy-duty hydrogen fuel cell trucks it is developing. GM also has the right to nominate one board director at Nikola.
GM explained it will engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions. The Badger is a heavyduty fuel-cell electric pickup expected to go into production by the end of 2022.
GM is spending US$3 billion a year to develop more than 20 electric models that it will launch by 2023.
Source: BORDER-NOW October 2020 Edition