Partnership

GM takes $2 billion ownership stake in Nikola, plans to engineer, manufacture Badger truck

General Motors anticipates having $4 billion in returns from its investment.

Photo courtesy of Nikola Corporation

General Motors (NYSE: GM) is expanding its stake in an alternative fuels future. The auto industry giant is receiving a $2 billion equity stake in Nikola (NASDAQ: NKLA) for in-kind contributions relating to the engineering and manufacturing of the company's hydrogen-powered pickup truck, the Badger.

The deal includes putting GM's hand in the full product planning process including engineering, validating, and homologating the Badger for both battery electric and fuel cell electric vehicle variants.

Nikola is one of the most innovative companies in the world. General Motors is one of the top engineering and manufacturing companies in the world. You couldn't dream of a better partnership than this," said Nikola Founder and Executive Chairman Trevor Milton.

Nikola Badger Nikola has revealed renderings of its hydrogen- and battery-powered pickup truck. Photo courtesy of Nikola Corporation

"By joining together, we get access to their validated parts for all of our programs, General Motors' Ultium battery technology and a multi-billion dollar fuel cell program ready for production. Nikola immediately gets decades of supplier and manufacturing knowledge, validated and tested production-ready EV propulsion, world-class engineering and investor confidence. Most importantly, General Motors has a vested interest to see Nikola succeed. We made three promises to our stakeholders and have now fulfilled two out of three promises ahead of schedule."

Nikola says that the engineering and manufacturing process would have cost the company $4 billions in battery and powertrain costs over 10 years and $1 billion in engineering and validation costs. Through its $2 billion investment, GM expects to receive inn excess of $4 billion in benefits between the equity value of the shares, contract manufacturing of the Badger, supply contracts for batteries and fuel cells, and EV credits retained over the life of the contract.

Nikola will utilize General Motors' Ultium battery system and Hydrotec fuel cell technology. General Motors debuted the Ultium battery system earlier this year. It will be an integral part of the company's lineup in the future including the GMC Hummer EV pickup and SUV and Cadillac Lyriq.

Nikola Badger The Nikola Badger powered by hydrogen fuel cell technology will include a water tap in its cabin. Photo courtesy of Nikola Corporation

Nikola is expected to introduce the Badger in early December. Badger is expected to enter production by the end of 2022. Deposits are currently being accepted for the model. Early in the reservation process, Milton divulged that 1,500 people per day were reserving the truck.

Another side of the Nikola business deals with tractor trailer technology. General Motors will be the exclusive supplier of fuel cells globally (outside of Europe) to Nikola for Class 7/8 trucks. This will allow Nikola to validate and scale to a possible multi-billion dollar operation.

Nikola remains an independent company. The investment is subject to customary antitrust regulatory approval and closing conditions. The parties anticipate closing the transaction prior to Sept. 30, 2020.

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Nuts & Bolts

 
 

Photo courtesy of Hyundai Motor Group

Hyundai Motor Group, the parent company of Hyundai, has announced the formation of a new unit - New Horizons Studio. The new venture is focused on the development of what Hyundai calls Ultimate Mobility Vehicles (UMVs).

New Horizons Studio is part of Hyundai's larger focus on the future of mobility. Unit workers will work to envision vehicles that wander with "unprecedented mobility". These products will focus on target customers that have unconventional travel needs whether it be to access places they have never been or adapt their mobility limitations to their surroundings.

Hyundai 'Elevate' Walking Car Concept

Photo courtesy of Hyundai Motor Group

New Horizons Studio is led by Vice President Dr. John Suh, who has held several leadership roles at Hyundai Motor Group since 2011. He served as founding director of Hyundai Ventures, and then led Hyundai CRADLE (Center for Robotic-Augmented Design in Living Experiences) as its founding director based in Silicon Valley. He brings over 35 years of expertise in the automotive and emerging technology sectors, including roles at Stanford University, Palo Alto Research Center (PARC; formerly, Xerox PARC), and General Motors Company.

"We aim to create the world's first transformer-class vehicle, also known as the Ultimate Mobility Vehicle," said Dr. Suh.

Dr. Ernestine Fu will move to New Horizons Studio as Director of Product Management. She has led research on human operator and autonomous vehicle interactions at Stanford University's Volkswagen Automotive Innovation Lab, as well as scaled emerging technology companies for over nine years as a venture capital partner at Alsop Louie Partners.

The Hyundai Elevate is the first vehicle being developed by the Studio. It debuted at CES 2019 and does not rely solely on wheels to makes it way across urban, suburban, and rural landscapes. The unit sees the Elevate as being able to respond in emergency situations like natural disasters or assist with persons who do not have access to an ADA ramp.

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The Lamborghini Urus Graphite Capsule adds new interior and exterior color choices for buyers.

Photo courtesy of Lamborghini Automobili

Expressions in color and trim meet at the Urus Graphite Capsule, a collection of SUVs produced by super luxury automaker Lamborghini. The Urus itself sits at the intersection of performance and practicality, and is the best-selling model in the Lamborghini lineup.

The Urus Graphite Capsule lets buyers push the limit in a pick-and-choose fashion. Lamborghini will offer the Urus Graphite Capsule in four new exterior matte colors including white Bianco Monocerus, black Nero Noctis, and grey Grigio Nimbus and Grigio Keres. The lower parts of the car, the front, rear, and side sills, are all finished in the color.

Lamborghini Urus Graphite Capsule

Photo courtesy of Lamborghini Automobili

From there, buyers are able to choose from four tiny accent colors: orange Arancio Leonis and Arancio Dryope, yellow Giallo Taurus, and green Verde Scandal. Those accent colors are shown on the front splitter, door inserts, and rear spoiler.

The cabin of the Urus sports the same traditional design the SUV has had during this, its initial generation. The Urus Graphite Capsule check box adds dark, anodized aluminium trim on the dashboard and door panels, with new matt-finish carbon fiber inserts. The buyer's choice of exterior colors are carried over to the inside where upholstery is contrast stitched. Q-citura stitching and the embroidered Lamborghini logo reside on the headrests.

The ventilated Alcantara seats are an exclusive option only available on the Urus Graphite Capsule and the recently launched Pearl Capsule.

"The new Graphite Capsule endorses the inimitable versatility of the Lamborghini Urus as the original Super SUV: its color and styling is as adaptable and versatile as its presence in every high-performance and lifestyle environment." said Automobili Lamborghini Chief Commercial Officer Giovanni Perosino. "The inherent design of the Lamborghini Urus, with the DNA of our super sports heritage, lends itself to virtually limitless potential for personalizing color and trim. The Urus Graphite Capsule is the latest collection to offer our growing clientele the opportunity to stamp their individuality and way of life on their Lamborghini."

The Urus Graphite Capsule is available on Urus model year 2021. It has a starting MSRP of $218,009 in the U.S.

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