GM Establishes Venture Capital Subsidiary
Just the other day, GM announced their plans to commit $100 million to form a new Venture Capital firm as an effort to seek new technologies and give them the extra competitive edge.
“We are constantly looking for ways to deliver the best technology for our customers, 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.” Said Stephen J. Girsky, G.M. Vice Chairman, in a statement as he announced on Friday that GM are forming their own venture capital firm (General Motors Ventures).
“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,” said their spokeswoman Ms. Childers-Arb.
Since 2008, General Motors has held equity stakes in two companies that are working on ethanol fuel; the size of the stakes has not been revealed to the public.
As a direct result of filing for bankruptcy last year, GM is 61% owned by the federal government, but has been slowly showing signs of recovery. Its first quarter earnings were reported to be $865 million last month, and it repaid it’s $6.7 billion owed to the US government in April.