General Motors Takes 11 Per Cent Stake In Electric Pick-Up Truck Maker Nikola

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General Motors has entered into a strategic partnership with electric pick-up truck maker Nikola. According to the deal, General Motors has ownership of 11 per cent stocks of the company. These stocks are worth USD 2 billion. In turn, it will produce Arizona-based startup Nikola Motors’ wild fuel cell pickup truck. Nikola Badger, a full size pickup truck, will be offered with both hydrogen fuel cell power and battery power. Electricity is generated by fuel cells by combining atmospheric oxygen with stored hydrogen. Hydrogen can be refilled much faster than current batteries take time to get recharged. The deal has resulted in a rise in the share of both the companies.

The deal allows General Motors to gain one seat on the board of directors of Nikola. It is one of the hottest vehicle startups at the moment and the deal is expected to mutually benefit one another. General Motors chief executive officer Mary Barra said that this will be another opportunity to deploy GM’s fuel cell systems and battery.“Our presence is going continuously in multiple electronic vehicle segments while we are trying to lower battery and fuel cell costs,” she said. Barra said that giving our electrified technology solutions to commercial and heavy duty vehicles will be another important step in fulfilling our vision of a zero emission future. After the deal, GM will be the exclusive fuel cell supplier for the upcoming class 7/8 trucks of Nikola.

Executive Chairman and Nikola Founder Trevor Milton said in a statement that the deal will give them access to the multi-billion dollar fuel cell program of GM. The fuel cell is ready for production and Ultium battery technology. With this deal, Nikola will immediately have access to decades of manufacturing knowledge. This will also bring it closer to the best engineering and confidence of investors. The deal will help the truck maker hit the market faster. This is because the manufacturing duties will be with General Motors. Meanwhile, General Motors is about to introduce the GMC HUMMER EV pickup.

 

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