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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The 2022 Acura TLX has the technology enabled.

Photo courtesy of Acura

Toyota and Lexus announced that the WarnerMedia RIDE app would be coming to their models earlier this year. Now, Honda and Acura will be offering the same.

On certain Wi-Fi enabled Honda and Acura vehicles, AT&T unlimited in-car Wi-Fi users will have access to the WarnerMedia RIDE app. The app allows users to connect multiple devices in their vehicles to browse, stream and share premium content from the WarnerMedia library while on the road.

Honda and Acura vehicle owners have been able to use their on-board modem as a hot spot for connecting up to seven devices since 2017. Models compatible for the new tech include the Acura RDX (2019-present), Acura TLX (2021), and Acura MDX (2022) across all trim levels. Honda vehicles with the tech include Accord (2018-present, Touring), Odyssey (2018-present; Touring, Elite), Insight (2019-present, Touring)., Passport (2019-present; Touring, Elite)., and Pilot (2019-present; Touring, Elite, Black Edition).

The WarnerMedia RIDE App allows passengers to access 1,000+ hours of live and on-demand entertainment. The app includes hit TV shows and movies from top brands such as Cartoon Network, CNN, HBO Max, TBS, TNT and TruTV, spanning animation, entertainment, news, sports and more.

WarnerMedia RIDE app The WarnerMedia RIDE app allows users to choose their own avatar.Photo courtesy of Acura

Users can set up profiles and personalize their user exerpience with an avatar from the WarnerMedia library. Profiles also ensure age-appropriate content with options for adults to restrict access to their profiles with an access code.

"Wireless connectivity and connected car services continue to be key features for customers and our long-standing relationship with AT&T continues to be one way we deliver exciting new content to Honda and Acura owners," said Art St. Cyr, vice president of North American Auto Strategy for American Honda. "Honda will continue working to enhance the in-car experience, including the capabilities of the AT&T network and access to top content with WarnerMedia RIDE."

"We're always looking for new and innovative ways to elevate the connected car experience for our customers. With WarnerMedia RIDE, we are delivering a connected experience that's perfect for journeys," said Joe Mosele, vice president, Mobility & Internet of Things, AT&T. "Our collaboration is keeping Honda and Acura owners connected wherever they travel with hours of news and entertainment for the whole family."

WarnerMedia RIDE is available now in the App Store and on Google Play for all U.S. unlimited data plan subscribers. WarnerMedia RIDE is included at no additional cost for existing and new unlimited subscribers.

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General Motors and Lockheed Martin will design a prototype of a vehicle that's capable of traversing Mars.

Photo courtesy of General Motors

Toyota and Hyundai aren't the only automakers getting into the extra terrestrial mobility game. A new partnership between Lockheed Martin and General Motors will develop the next generation of lunar vehicles to transport astronauts to the surface of the Moon.

NASA's Artemis program has plans to send Americans back to the moon. Like the military did when they asked for an off-road-worthy transport vehicle for combat support use in the early 1940s, NASA is asking the automotive and aeronautics industry to develop a Lunar Terrain Vehicle (LTV) to enable astronauts to explore the lunar surface father than ever before. The Apollo rovers only ventured 4.7 miles.

Lockheed Martin brings a 50-year history of working with NASA on a variety of deep-space human and robotic spacecraft, such as NASA's Orion exploration-class spaceship for Artemis, to the table. The company's crafts and systems have been to every planet in the solar system.

Lockheed Martin General Motors Partner to Develop Next-Generation Lunar Rover www.youtube.com

"This alliance brings together powerhouse innovation from both companies to make a transformative class of vehicles," said Rick Ambrose, executive vice president, Lockheed Martin Space. "Surface mobility is critical to enable and sustain long-term exploration of the lunar surface. These next-generation rovers will dramatically extend the range of astronauts as they perform high-priority science investigation on the Moon that will ultimately impact humanity's understanding of our place in the solar system."

General Motors, which first worked with NASA during the Apollo missions and helped develop the Apollo Lunar Roving Vehicle (LRV), that was used on Apollo 15-17 missions, is bringing its electric battery and autonomous vehicle technology know-how to the partnership.

"General Motors made history by applying advanced technologies and engineering to support the Lunar Rover Vehicle that the Apollo 15 astronauts drove on the Moon," said Alan Wexler, senior vice president of Innovation and Growth at General Motors. "Working together with Lockheed Martin and their deep-space exploration expertise, we plan to support American astronauts on the Moon once again."

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