BrightDrop Integration Within GM Will Save A Considerable Amount Of Money
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Back in November, BrightDrop announced that it had transitioned to become a fully integrated part of General Motors, rather than a wholly owned subsidiary. Now, GM CFO Paul Jacobson has addressed the decision to integrate BrightDrop within GM, saying that the move will save a considerable amount of money going forward.
Jacobson addressed the decision during a presentation held at the recent Barclays 2023 Global Automotive and Mobility conference.
“As you saw us announce, BrightDrop, we’re actually rolling that back into North America, and the reason for that is really to save a considerable amount of overhead that got created as that business was looking to do things beyond the vehicle,” Jacobson said.
The GM CFO stated that GM will focus on “making sure that we get the vehicle that customers want, get it built profitably, and grow it from that foundation,” adding that if there’s a business beyond that foundation, there could be an opportunity to address it later.
“The team was really working on a lot of different things, and I think this is going to help us remain focused on making sure that we achieve what’s absolutely critically necessary for us going forward, which is profitability in those vehicles,” Jacobson said.
General Motors launched BrightDrop in early 2021 as a new business set to offer “an ecosystem of electric first-to-last-mile products,” including software and services intended to provide delivery and logistics companies with greater overall efficiency. The first BrightDrop product offered was EP1, an all-electric delivery pallet, while the Zevo 600 and Zevo 400 delivery vans followed afterwards.
In November of this year, BrightDrop announced that it would become a fully integrated part of GM. The announcement coincided with the news that BrightDrop CEO Travis Katz would leave the company, although GM didn’t elaborate on the reason behind his departure.
GM is now aiming to scale-up production of the all-electric Zevo delivery van following the integration of a new battery-module plant at the GM CAMI facility in Canada.
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So we can buy one at our local Chevy or GMC Store? Where it belongs anyway ?