GM launches VC arm to fund innovation

GM launches VC arm to fund innovation

New York: The American auto giant General Motors has set up a $100-million venture capitalist subsidiary to invest in companies that are developing new technologies in the automotive and transportation sector.

GM has said it has created a venture capital subsidiary General Motors Ventures, designed to help the company identify and develop innovative technologies in the automotive and transportation sector, the Detroit-based company, which till recently was the world’s largest auto company, said in a statement.

GM Ventures has been funded with an initial investment of $100 million and is currently exploring equity investment in a number of auto-related technologies and business models.

GM Ventures would be run by Jon Lauckner, who was GM’s former vice-president for global product planning, from 1 July. He would report to Stephen J Girsky, vice-chairman for corporate strategy and new business development at GM.

“We are constantly looking for ways to deliver the best technology for our customers. Our goal is to nurture innovative technologies to help bring them to the market, and to ensure our customers have access to the best technology available," Girsky.

GM, which is 61% owned by the US government now after the 2009 bailout following its bankruptcy, last month posted a net income of $1.2 billion for the January-March quarter, against a loss of $5.9 billion in the year-ago period. Its total revenue during the quarter jumped by 40.32 per cent to $31.5 billion.