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GM electric commercial vehicle unit to build dedicated dealer network -Breaking

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© Reuters. FILE PHOTO : This is the General Motors Warren Transmission Operations Plant at Warren, Michigan. October 26, 2015. REUTERS/Rebecca Cook

DETROIT, (Reuters) – General Motors Co (NYSE 🙂 will create a dedicated dealer network for its electric commercial vehicle business BrightDrop to help drive growth, said the head of the unit on Tuesday.

Travis Katz (BrightDrop’s chief Executive) did not specify how many dealers would be part of the new network. However, he indicated that it will be smaller and more focused on urban markets than GM’s retail network. Locations will be chosen to service fleet customers, such as FedEx and Verizon (NYSE.). GM also supplies vehicles through contract.

Katz explained that BrightDrop plans to create a BrightDrop-specific network of dealerships. Katz also stated that BrightDrop was in touch with existing GM dealers and could work with others.

BrightDrop, a market that is GM’s key growth area, has been declared by the company as a potential source of revenue.

Number 1. U.S. Automaker No.1 sees global E-Commerce Revenue reaching $4 Trillion in 2023 and increasing to $7.4 Trillion in 2029. GM executives expect BrightDrop to generate $10 billion in revenue by 2030, with low-20% profit margins.

Katz answered the question about whether GM plans to spin off BrightDrop and seek out outside investors, as it did with Cruise’s autonomous-driving unit.

He stated, “Right now the company structure is as a wholly-owned entity and that’s what we’re running,”

BrightDrop will begin to sell its first vehicle, the EV600 van in the fall. The EV410 is due for release in 2023.

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