TechCrunch: The Station: Waymo nabs more capital, Cruise taps a $5B credit line and hints about Argo’s future
By Kirsten Korosec
TechCrunch – June 21, 2021
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Cruise, the self-driving subsidiary of GM, secured a $5 billion line of credit from the automaker’s financial arm to pay for hundreds of purpose-built electric and autonomous Origin vehicles as they start to roll off the assembly line. The access to the credit provided by GM Financial will push Cruise’s “total war chest” to more than $10 billion as it prepares for commercialization, CEO Dan Ammann wrote in a blog post. In short: the credit will be used to buy these Cruise Origins from GM, which is assembling the autonomous vehicles at its renamed and renovated Detroit-Hamtramck assembly plant. The factory is now called Factory ZERO.
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Autonomous vehicle developers Nuro and Cruise, along with three other entities, have formed a new coalition to support a California bill that would require AVs to be zero emission by 2030. TechCrunch’s Rebecca Bellan was the first to cover the bill back in March. Notably absent from this coalition are Argo AI, which has Ford and VW has backers and customers, as well several other legacy automakers. John Davis, chief engineer at Ford Autonomous Vehicles, told Bellan back in March that the computing demands of an AV platform means that it may make more sense to transition first to a hybrid model before going full EV.
For Cruise’s part, it makes sense that they’d want to ratchet up their support of the bill, especially after news broke that earlier this week they’d taken out a $5 billion line of credit to ramp up production of their electric Cruise Origin AV.
EV proponents are fired up about the possibility of taxing EVs as one way to fund the massive infrastructure investments that are currently being debated in Washington. The proposal is being mulled by legislators as they continue to negotiate the infrastructure package. Joe Britton, the executive director of the Zero Emission Transportation Association, called the tax proposal “the brainchild of those who want to unfairly punish EV drivers and hinder clean vehicle deployment.”
It seems that an EV tax could be the sacrificial lamb that some legislators are looking for, but it is important to note — as ZETA does — that battery electric vehicles are still only around 1% of the cars on the road.
— Aria Alamalhodaei