General Motors Co. moving forward in negotiations with startup Nikola Corp. A top manager at the Detroit automaker spoke about the proposed partnership for the production of electric vehicles and fuel cell trucks.
GM and Nicola announced a preliminary agreement last month, but have yet to come to an agreement. Nikola's share price plummeted after the seller was accused of fraudulent short positions, prompting questions from investors about GM's due diligence and commitment to the deal.
“Right now we are moving forward,” said GM President Mark Reuss. In what he called the "exciting part" of these discussions, Reuss said GM plans to share hydrogen fuel cells. technology co-developed with Honda Motor Co. and Nikola for use in both pickup trucks and heavy trucks.
“They are taking what I consider to be the best fuel cell in the world — our fuel cell, which is produced in our joint venture with Honda right here in Michigan — and they are taking this fuel cell and considering using it in tough conditions. the market for large trucks - classes 7 and 8, as well as the Badger light truck, ”he said.
Nikola shares fell 8.4%, climbing 3% to $ 21.35 as of 9:46 am in New York.
The proposed deal will give GM an 11% stake in Nikola and allow the startup to leverage its hydrogen fuel cell technology. GM also said it plans to produce a Badger pickup for Nikola, which will initially run on battery power and will eventually run on fuel cells.
Reuss said Badger will have a different drivetrain than GM will use in its new Hummer pickup truck, which will run on the Ultium battery system that the Detroit automaker has developed with LG Chem Ltd.
“We will not sell and sell this truck. This is what Nicola does, ”Reuss said. "It's still an electric fuel cell truck, but it's very different from what we offer in Ultium kits for a pure electric Hummer."