DETROIT — General Motors announced it is acquiring SoftBank Vision Fund 1’s equity ownership stake in Cruise for $2.1 billion and separately will make an additional $1.35 billion investment in Cruise, replacing a previous commitment made by the fund in 2018. Since GM acquired a majority ownership stake in 2016, Cruise has made self-driving cars a reality and is a leader on the pathway to commercial autonomous ridesharing and delivery, creating significant value for both GM shareholders and Cruise’s minority shareholders.
“We are extremely pleased to announce GM is leveraging the strength of its balance sheet to capitalize on the opportunity to increase its equity investment in Cruise and advance our integrated autonomous vehicle strategy. We continue to believe our investment represents an extraordinary opportunity for creating long-term shareholder value,” said GM Chair and CEO Mary Barra. “Our increased investment position not only simplifies Cruise’s shareholder structure, but also provides GM and Cruise maximum flexibility to pursue the most value-accretive path to commercializing and unlocking the full potential of AV technology.”
Kyle Vogt, Cruise CEO, stated: “GM’s increased investment illustrates its commitment to Cruise and our mission of creating a better world by deploying driverless cars at scale. Cruise will continue to operate as it does today – an independent company working alongside GM in a flexible, collaborative partnership. Cruise and GM’s continued partnership, as well as GM’s financial strength and manufacturing scale, are significant enablers and key differentiators for Cruise as we accelerate our progress and enter this next phase of commercialization.”
Last month Cruise achieved a significant milestone toward its vision of a safer, more sustainable and accessible transportation future as it became the first company to offer fully driverless rides to the public in a major U.S. city.
The Cruise Origin is a zero-emissions, shared, electric vehicle that has been purposefully designed from the ground up to operate without a human driver. This means it does not rely on certain human-centered features, like a steering wheel or a sun visor, to operate safely. In the spirit of the U.S. Department of Transportation’s six guiding principles for work on innovation in transportation, the Origin seeks to be in service of something greater: driving environmental sustainability, ensuring U.S. leadership in developing and manufacturing autonomous technology and artificial intelligence, supporting the American workforce and promoting accessibility.
Every Cruise Origin will help reduce the world’s reliance on oil, as well as the emissions that disproportionately burden historically underserved communities. The Origin will help expand mobility options for seniors, people who are blind or have low vision, and other communities that have traditionally faced barriers in access to reliable transportation. GM is manufacturing the Origin in Michigan at Factory ZERO, supporting and creating American jobs, promoting economic growth, and advancing the long-term success of the U.S. manufacturing sector and America’s automotive industry.
In addition to GM’s increased investment, Cruise today launched its Recurring Liquidity Opportunity Program, which delivers on it’s promise to provide Cruise employees the potential for long-term share price upside as well as flexibility around share liquidity. This program will keep Cruise extremely competitive in the talent market against both public and private companies as the company enters the early commercialization phase and continues to attract and retain some of the world’s best talent.
Moelis & Company LLC acted as financial advisor to GM.