GM Takes BrightDrop Commercial EV Unit, CEO to leave

GM Takes BrightDrop Commercial EV Unit, CEO to leave

The subsidiary has been wholly owned by GM since it was founded in 2021, but will now be “even more” integrated into the parent company.

General Motors announced the absorption BrightDropits wholly-owned electric commercial vehicle subsidiary since January 2021.

Born out of GM’s Innovation Lab, BrightDrop has operated as a technology startup within General Motors and had been operating independently for the past three years, but as of November 16 it was “even more integrated” into the parent company.

“Starting today, BrightDrop will become part of GM. We believe this move will benefit our fleet customers by providing them with a better single point of contact through GM Envolve,” the automaker said in a press release announcing the move.

GM Envolve is a business unit created in May that includes products, technology and services for fleet customers.

General Motors said the reorganization of its electric commercial vehicle division will help reduce costs, according to Reuters. The company also said the CEO of BrightDrop Travis Katz he would leave on an unspecified date, but did not give details about his departure.

“As BrightDrop has grown, we are now bringing that ethos back to GM so that our work can be better and so BrightDrop’s startup spirit can help make it more successful with GM’s commercial customers,” the company said.

GM’s addition won’t change much from a manufacturing perspective, as the company “remains committed to ramping up BrightDrop Zevo production.”

Production of the BrightDrop Zevo 400 and Zevo 600 is currently on hold, but GM expects to resume in spring 2024, when CAMIA new battery module factory in Canada will go online to support the production of EVs.

“This new battery module line will be able to fully support Zevo production at CAMI and increase EV production at other GM plants,” GM said.

EV production at the CAMI Assembly Plant in Ingersoll, Ontario, was halted in October due to delays in required deliveries. The last one battery modules that power EVs.

Going forward, the BrightDrop Zevo 400 and Zevo 600 electric pickup trucks will remain part of GM Envolve’s commercial offerings, the automaker said. In addition, GM integrates all digital business solutions, including BrightDrop Core, into its software and services organization.

General Motors told it Detroit news that the BrightDrop absorption could affect a small number of employees of the electric commercial vehicle division, although most are expected to be integrated into GM.

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