GM invests in Bright Automotive to make plug-in vans

General Motors' venture capital unit is buying a minority stake in electric car start-up Bright Automotive to advance the development of fuel-efficient vehicle technologies.

GM and Indiana-based Bright Automotive said on Tuesday they have agreed to pursue a strategic partnership under which GM will invest $5 million to help accelerate Bright's production of its IDEA plug-in hybrid commercial vehicle.

GM is also launching this year its highly anticipated Chevrolet Volt electric car for the consumer market, a program it started four years ago in part to shake an association with gas-guzzling trucks and to show it could compete with the likes of Toyota Motor Corp on hybrid technology.

The Bright deal marks the first investment by General Motors Ventures LLC, a $100 million venture capital arm set up by the U.S. automaker in June with the aim of investing in auto and transportation start-ups in areas such as lightweight materials, clean engine technology and on-board electronics.

"Funding early-stage start-up companies is a new way of doing business at GM to accelerate the introduction of innovative technology to support our core automotive business and give us a competitive advantage," said Jon Lauckner, president of GM Ventures.

"In this case, our funding of Bright Automotive will accelerate the introduction of advanced propulsion and lightweight technologies in the commercial vehicle market."

The companies signed a memorandum of understanding in July. GM Ventures provided funding to Bright this week, and the companies intend to complete the formal agreements later this year.

Upon completion of the agreements and other terms, GM Ventures will have a minority stake in Bright, and Bright will have access to GM technologies, and advanced engine and transmission systems, for its vehicle. The size of the GM stake in Anderson, Indiana-based Bright was not disclosed.

"With this deal, Bright gets financial support that puts us on the fast-track toward mass production of the IDEA," said Reuben Munger, Bright chairman and chief executive.

Bright, which was founded in early 2008, said the investment will allow it to begin ramping up development of the production program for the IDEA in the current quarter.

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