The agreement with Nikola also extends General Motors’ use of its fuel cell technology to the Class 7/8 semi-truck market and represents a high-volume commercialization of its Hydrotec fuel cell system.
Nikola Corporation (NASDAQ: NKLA) and General Motors Co. (NYSE: GM) today announced a “strategic partnership” that starts with the Nikola Badger and carries cost reductions through Nikola’s other programs. Badger is anticipated to enter production by year-end 2022. This is potentially a deal that can drastically change the transportation world.
“We would rather work with them than against them,” said Nikola founder and Executive Chairman Trevor Milton on a phone call with reporters and analysts. Once again the latest linkup is an attempt to share the ruinously expensive costs of investment needed to provide 21st century mobility to a business that until a generation ago was essentially an outgrowth of the 19th century blacksmithing business.
The agreement with Nikola also extends General Motors’ use of its fuel cell technology to the Class 7/8 semi-truck market and represents a high-volume commercialization of its Hydrotec fuel cell system and complements the company’s battery-electric propulsion plans. Fuel cells will become increasingly important to the semi-truck market because they are more efficient than gas or diesel. GM also has a deal with Honda to commercialize fuel cell technology for use by both companies across a range of applications. These xanax fuel cells will be manufactured in Brownstown, Michigan. (Honda, GM Ink MoU on North American Alliance!)
Nikola will exchange $2 billion in newly issued common stock for the in-kind services and access to General Motors’ parts and components. General Motors receives 11% ownership of Nikola and right to nominate one director. GM will be subject to a “staged lock-up provision beginning in one year and ending in June 2025.” General Motors will engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions.
Other programs, it’s hoped, will include Nikola Tre, Nikola One, Nikola Two and NZT. As part of the agreement, Nikola will use General Motors’ Ultium battery system and Hydrotec fuel cell technology. GM said that this signifies a key commercialization milestone for the global automaker. Nikola anticipates saving over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs.
General Motors expects to receive more than $4 billion of benefits between the equity value of the shares, contract manufacturing of the Badger, supply contracts for batteries and fuel cells, and EV credits retained over the life of the contract.
General Motors will be the exclusive supplier of fuel cells globally (outside of Europe) to Nikola for Class 7/8 trucks, providing validation and size in an emerging multi-billion-dollar market.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Nikola and General Motors Partner! Nikola Badger Truck to be Engineered and Manufactured by GM
The agreement with Nikola also extends General Motors’ use of its fuel cell technology to the Class 7/8 semi-truck market and represents a high-volume commercialization of its Hydrotec fuel cell system.
Nikola Corporation (NASDAQ: NKLA) and General Motors Co. (NYSE: GM) today announced a “strategic partnership” that starts with the Nikola Badger and carries cost reductions through Nikola’s other programs. Badger is anticipated to enter production by year-end 2022. This is potentially a deal that can drastically change the transportation world.
“We would rather work with them than against them,” said Nikola founder and Executive Chairman Trevor Milton on a phone call with reporters and analysts. Once again the latest linkup is an attempt to share the ruinously expensive costs of investment needed to provide 21st century mobility to a business that until a generation ago was essentially an outgrowth of the 19th century blacksmithing business.
The agreement with Nikola also extends General Motors’ use of its fuel cell technology to the Class 7/8 semi-truck market and represents a high-volume commercialization of its Hydrotec fuel cell system and complements the company’s battery-electric propulsion plans. Fuel cells will become increasingly important to the semi-truck market because they are more efficient than gas or diesel. GM also has a deal with Honda to commercialize fuel cell technology for use by both companies across a range of applications. These xanax fuel cells will be manufactured in Brownstown, Michigan. (Honda, GM Ink MoU on North American Alliance!)
Nikola will exchange $2 billion in newly issued common stock for the in-kind services and access to General Motors’ parts and components. General Motors receives 11% ownership of Nikola and right to nominate one director. GM will be subject to a “staged lock-up provision beginning in one year and ending in June 2025.” General Motors will engineer, homologate, validate and manufacture the Nikola Badger battery electric and fuel cell versions.
Other programs, it’s hoped, will include Nikola Tre, Nikola One, Nikola Two and NZT. As part of the agreement, Nikola will use General Motors’ Ultium battery system and Hydrotec fuel cell technology. GM said that this signifies a key commercialization milestone for the global automaker. Nikola anticipates saving over $4 billion in battery and powertrain costs over 10 years and over $1 billion in engineering and validation costs.
General Motors expects to receive more than $4 billion of benefits between the equity value of the shares, contract manufacturing of the Badger, supply contracts for batteries and fuel cells, and EV credits retained over the life of the contract.
General Motors will be the exclusive supplier of fuel cells globally (outside of Europe) to Nikola for Class 7/8 trucks, providing validation and size in an emerging multi-billion-dollar market.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.