Investments · Self-driving cars
SoftBank Vision Fund commits $2.25 billion to GM's self-driving unit Cruise
- Investor
- SoftBank Group (via SoftBank Vision Fund) (Tokyo)
- In
- GM Cruise, San Francisco, California
- Value
- $2.25B ($900M at closing plus $1.35B at commercial deployment)
- Status
- The first tranche was completed in 2018.
- Date
- 2018-05-31
SoftBank Group's Vision Fund agreed to invest $2.25 billion in GM Cruise, General Motors' self-driving car unit in San Francisco, for a 19.6% stake. It was to pay $900 million at closing and $1.35 billion once Cruise's driverless cars were ready for commercial deployment.
Why it matters
The deal tied SoftBank's mobility investments to a US automaker's autonomous driving program and helped GM fund the costly path to commercial service.
Two tranches
The second payment of $1.35 billion depended on Cruise's self-driving vehicles being ready for commercial deployment, subject to regulatory approval. General Motors itself agreed to invest a further $1.1 billion in Cruise at closing.
Plans for 2019
The companies said the money would fund commercialization at scale beginning in 2019. GM Chief Executive Mary Barra described the goal as "zero crashes, zero emissions and zero congestion," and said the deal gave GM more flexibility in how it allocates capital.
Sources
Kakehashi M&A News home
