General Motors has ploughed US$5m into Bright Automotive to accelerate the Indiana automaker’s IDEA plug-in hybrid commercial vehicle.
The funding is the first time GM’s newly-formed LLC has provided finance and follows a MOU signed between both companies in July.
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“It is a convertible promisory note,” a GM spokesman in Detroit told just-auto. “It is for the foreseeable future.
“We have not disclosed the stake apart from to say it is a minority [one]. “It is the first investment for this new GM venture LLC.”
GM Ventures provided funding to Bright this week, and the two companies intend to complete the formal agreements later this year.
On completion, General Motors Ventures will have a minority stake in Bright Automotive and Bright would have access to GM technologies, advanced engine and transmission systems for its vehicle.
“This relationship is an important step forward for Bright, and a strong endorsement of our highly experienced automotive team and our vehicle,” said Bright Automotive chairman and CEO Reuben Munger.
“With this deal, Bright gets financial support that puts us on the fast track toward mass production of the IDEA. And perhaps just as importantly, we gain a strategic partner that is a world leader in electrification.”
GM said the IDEA delivered a positive total cost of ownership to fleet customers by providing greater fuel efficiency than current fleet vehicles in its class.
It operates in electric mode for 40 miles before switching to an estimated 36-mpg hybrid mode for 100+ mpg potential based on daily driving behaviour.
Funding through GM Ventures will allow Bright to begin ramping up the development of the production programme for the IDEA in the third quarter of 2010.
Bright continues to seek a low-interest loan through the Department of Energy’s Advanced Technology Vehicles Manufacturing programme.
Financial terms have not been not disclosed.
