GM Stomps Into Electric Motor-making: Game On, Startups

The world of electric motor-making for hybrid and electric vehicles, currently dominated by a small group of suppliers, is about to get a big new addition to its ranks: General Motors. Announcing today that it plans to invest $246 million setting up a facility for building electric motors — what it says will be the first such plant in the U.S. operated by a major automaker — GM plans to stomp into a field that some startups have been eyeing as a niche in the nascent plug-in vehicle market.

For startups aiming to provide powertrain components or system technology to automakers and parts suppliers, like Tesla Motors and ETV Motors, this ups the ante. Backed by a $105 million grant from the Department of Energy for this manufacturing project, GM’s move signals serious commitment to not only building its own green vehicle components, but also developing expertise in this area to help it identify the highest quality electric components from suppliers. (Tesla also has DOE backing in this race, having won a $100 million loan to help it set up manufacturing of battery packs, electric motors and other components for use for its own cars, and also to sell to other automakers.)

GM’s move into the electric motor-making game was not wholly unexpected. In addition to the DOE grant, GM has emphasized over the last year or so that it views battery pack technology as a core competency for its plug-in vehicle efforts (it’s buying battery cells from LG Chem, but building the packs in-house). And it’s part of a larger trend: Mike Harrigan, a former Tesla VP who’s now chief of sales and marketing for battery tech startup Atieva, predicted in an interview last spring that most big car companies, if not all, will bring battery tech in-house within the next few years.

Startups hoping to license their green car tech to General Motors won’t necessarily be shut out as a result of this demonstration of GM’s commitment to developing its own expertise in the technology. As Levi Tillemann-Dick, CEO of IRIS Engines, said in an email, “Cross-licensing has played a role within the industry for decades,” despite automakers’ longstanding preference, “for building core components (e.g. engines) in-house.”

GM Vice Chairman for Product Development Tom Stephens confirmed today that the company may still reach out to others for EV and hybrid tech. He told reporters at the Washington Auto Show that GM is open to partnering with suppliers as well as other automakers on batteries, electric motors and power electronics. “We’re open to all of those,” he said.

For any startups hoping to get bought as GM goes big for electric motors, however, that might be wishful thinking. Dave Roman, director of environment, technology and product development communications, at GM tells us the company has no acquisition plans.

loading

Comments have been disabled for this post