Mobile
News
6/7/2010
02:16 PM
50%
50%

GM Establishes $100 Million Venture Capital Fund

General Motors Ventures will invest in automotive-related technologies.

Less than a year after it emerged from bankruptcy, General Motors reported that it has funded a venture capital company with an initial $100 million to invest in automotive-related technologies.

While GM has supported ethanol fuel technologies and will likely continue to do so, the firm has also invested in some high-tech endeavors. It currently trails Ford Motor, which has made major investment commitments for GPS, iTunes tagging, Opera software, and electronics technologies. GM also has a seasoned high-tech leader in CEO Ed Whitacre Jr., who previously was chairman and CEO of AT&T.

General Motors Ventures will be led by Jon Lauckner, who will serve as president of the VC unit beginning July 1. Lauckner will also continue as a board member of GM, suggesting he will likely exercise considerable clout for the VC operation. Lauckner will report to Stephen Girsky, vice chairman of GM's corporate strategy.

"We are constantly looking for ways to deliver the best technology for our customers," said Girsky in a statement. "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."

Slightly more than 60% of GM is owned by the U.S. government, and the company is working to pay back the $50 billion it was loaned by the government to bail it out of bankruptcy. To date the company has paid the government $6.7 billion, and it has hopes of repaying the remaining $43.3 billion by selling stock to the public, possibly as soon as later this year.

GM's former management left under pressure and Whitacre came out of retirement to run the company. He created AT&T after assembling a group of former Baby Bells, cobbling them together around Southwestern Bell. GM recently posted net income of $865 million in its first quarter.

Comment  | 
Print  | 
More Insights
InformationWeek Elite 100
InformationWeek Elite 100
Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.