DETROIT
,
March 21, 2022
(press release)
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Today, General Motors Co. (NYSE: GM) 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 Cruise’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. Founded and headquartered in San Francisco, Cruise's goal is to drive change by building the world's most advanced self-driving, all-electric, shared vehicles that safely connect people to the places, things, and experiences they care about. Join our mission at www.getcruise.com. About General Motors General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com. Cautionary Note on Forward-Looking Statements: This press release may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgment about possible future events and are often identified by words such as "aim," "anticipate," "appears," "approximately," "believe," "continue," "could," "designed," "effect," "estimate," "evaluate," "expect," "forecast," "goal," "initiative," "intend," "may," "objective," "outlook," "plan," "potential," "priorities," "project," "pursue," "seek," "should," "target," "when," "will," "would," or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual result may differ materially due to a variety of important factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
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