GM Forms $100 Million Technology Venture Firm NY Times June 24th 2010 " General Motors said Friday that it was committing $100 million to form its own venture capital firm as it seeks new technologies that can provide an advantage over competitors.
The subsidiary, known as General Motors Ventures, plans to invest in start-up companies working in a variety of fields, including renewable fuels, information and entertainment systems and advanced materials. G.M. already has identified some potential targets and expects to announce its first investments soon, a spokeswoman, Sherrie Childers-Arb, said.
“We are constantly looking for ways to deliver the best technology for our customers,” Stephen J. Girsky, a G.M. vice chairman, said in a statement. “Our goal is to nurture these innovative technologies to help bring them to market, and to ensure our customers have access to the best technology available.”
Jon Lauckner, who has been G.M.’s vice president for global product planning, will oversee the venture capital effort starting July 1, reporting to Mr. Girsky.
The company described the $100 million as an initial investment in its plan, and Ms. Childers-Arb said that would be enough to invest in “several” companies. In some cases, G.M. expects to take an equity stake in the companies.
“It allows the company to move quickly to make small investments in companies where we want to pursue a long-term technology that we think has potential for our customers,” Ms. Childers-Arb said.
In addition to new technologies, G.M. said it was looking for innovative business models, like more efficient distribution systems.
Since 2008, G.M. has held equity stakes in two companies that are working on ethanol fuel; the size of the stakes has not been revealed.
Though other Detroit automakers do not have venture capital arms, large companies in other industries do, including Google, Intel and Procter & Gamble. Google Ventures, started in 2009, plans to spend up to $100 million each year and recently said it invested in 10 companies in its first year.
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