mary barra
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General Motors said Wednesday it is adding two new zero-emissions vehicles to its commercial portfolio as it looks to expand its first-to-last-mile business arm, BrightDrop.
The first vehicle will be a battery electric cargo van under the Chevrolet brand that will likely be similar to the popular Chevy Express van. The second will be a medium-duty truck that CEO Mary Barra said “will put both the Ultium and Hydrotec hydrogen fuel cell technology to work.”
Much has been made of GM’s commitment to invest in electric passenger vehicles, but the company has also been busy targeting commercial customers with zero-emitting technologies. GM’s go-to technologies are battery electric and hydrogen fuel cells for heavy-duty and long-haul purposes.
GM in January said it would supply Hydrotec Hydrogen Fuel Cell Power Cubes to trucking manufacturer Navistar, with the first hydrogen trucks anticipated to go on sale in 2024. The automaker also penned a deal with Wabtec to develop hydrogen fuel cells and batteries for locomotives.
GM launched BrightDrop in January in a bid to offer commercial customers, starting with a contract with FedEx, an ecosystem of electric and connected products.
BrightDrop started with two main products, an electric van called the EV600 with an estimate range of 250 miles and a pod-like electric pallet dubbed EP1. BrightDrop executives previously hinted that the business unit was working on other products, including a medium-distance vehicle that transports multiple electric pallets known as EP1 and rapid load delivery vehicle concept.
“Between these new trucks, BrightDrop, EV pickups coming from Chevrolet and GMC, and our work with Wabtec on locomotives, and Navistar on semi trucks, we will have electric solutions for almost any towing or hauling job you can imagine,” Barra said.
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General Motors’ EV day didn’t just mark the launch of a new flexible battery architecture and an ambitious plan to deploy this underlying foundation across all of the automaker’s brands, including Buick, Cadillac, Chevrolet and GMC.
It was a resurrection, albeit with a modern twist.
The company’s announcement this week gave new life to its brand ladder — a portfolio that ranges from the heights of luxury to the most basic utility — and tipped its hand about how it will bring EVs “across the chasm.”
This game plan isn’t new. GM is bringing back a strategy that once defined its success and reshaped America’s automotive landscape. This strategy worked for GM until complacency crept in and the brand ladder collapsed. This time, GM is aiming to avoid these snares.
Henry Ford’s moving assembly line birthed the early auto industry, but as American prosperity grew in the 1910s-20s, it was General Motors that laid the foundations of the modern car market. Under then-chairman Alfred Sloan, the amalgamation of once-independent automakers united under a strategy that would, in his words, create “a car for every purse and purpose.” From a value Chevrolet to a sporty Pontiac, from a discreetly plush Buick to a majestic Cadillac, and with countless brands in between, what became known as Sloanism birthed the idea that there should be a car to reflect every American’s self-image and social status.
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GM chairman and CEO Mary Barra said Thursday morning that the automaker is forming a joint venture with LG Chem to mass produce battery cells for its electric vehicles, a portfolio that will include a new battery-electric truck coming in the fall of 2021.
The two companies said they will invest up to a total of $2.3 billion into the new joint venture and will establish a battery cell assembly plant on a greenfield manufacturing site in the Lordstown area of Northeast Ohio that will create more than 1,100 new jobs. Groundbreaking is expected to take place in mid-2020.
GM has used LG Chem as a lithium-ion and electronics supplier for at least a decade. The companies began working together in 2009. The relationship deepened as GM developed and then launched the Chevy Bolt EV.
However, the joint venture marks a shift that Barra said in a call with reporters Thursday morning would accelerate the automaker’s ability to win in the electric vehicle space.
“The joint venture signing today is more than just a collaboration, it’s the beginning of a great journey,” LG Chem CEO and vice chairman Hak-Cheol Shin said during a Thursday morning call with reporters.
The venture is significant for both companies. The new plant will supply GM’s next generation of electric vehicles. Barra said the company is still on track to introduce 20 electric vehicles globally by 2023.
If GM expects to build a profitable EV business it will have to do more than just bring these vehicles to market. The next generation of vehicles will have a new battery electric vehicle architecture, will be desirable, profitable with the right range and affordable, Barra noted during the call. “It’s got to be affordable to drive the volume and really drive EVs in the marketplace, and customers are looking for affordability. And so that is the journey we are on and we think working with LG is will accelerate that path.”
Meanwhile, the deal gives a boost to LG’s battery business, which Shin said is expected to grow to $25 billion by 2024.
The battery plant will have an annual capacity of more than 30 gigawatt hours with flexibility for expansion, according to GM. If successful, the annual capacity at the plant would be close to the same output of Tesla’s massive factory near Reno, Nev. Tesla and Panasonic are partners in the massive factory that produces electric motors and battery packs. Panasonic makes the cells, which Tesla then uses to make battery packs for its electric vehicles. Tesla hasn’t shared capacity numbers recently, but previously stated plans for it to have a 35 gigawatt-hour capacity.
The location of the battery venture could build goodwill in Lordstown, a town that suffered from sweeping layoffs after GM decided to stop producing the Chevrolet Cruze at its assembly plant there. GM “unallocated” its Lordstown plant, a designation that meant the automaker would shutter the plant. The decision resulted in the elimination of some 1,200 jobs.
Lordstown Motors Corp., a battery-electric transportation technology company, acquired the old GM plant last month.
The investment comes in addition to GM’s $28 million investment in its Warren, Mich. battery lab announced late last year.
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Tunisian human rights activist Amira Yahyaoui couldn’t go to college.
Not because she couldn’t afford it; where she comes from, college is virtually free. She lost the opportunity to pursue higher education, to finish high school, even, when she was exiled from Tunisia at age 17, under the repressive regime of the country’s former President, Zine El Abidine Ben Ali.
As part of the Tunisian human rights diaspora, she was inspired to build Al Bawsala, a globally renowned NGO that fights for government accountability, transparency and access to information. Now, Yahyaoui has traveled thousands of miles to San Francisco to fight another battle near and dear to her heart: civic education, or in Silicon Valley terms, edtech.
“I always knew that I wouldn’t allow myself to do anything else before solving the problem in my country and today, Tunisia is the only Arab democracy in the world,” Yahyaoui told TechCrunch.
With that in mind, her focus has shifted to Mos, a tech-enabled platform for students to apply for financial aid. With backing from Uber co-founder Garrett Camp, his startup studio Expa, Kleiner Perkins chairman John Doerr, Base Ventures, Sweet Capital and others, Mos has closed a $4 million seed round and plans to take its recently-launched product to the next level.
The startup seeks to decrease American student debt, which totaled nearly $1.6 trillion in 2018, and digitize the antiquated government systems that deter students from applying for financial aid. For a one-time fee of $149 and about 20 minutes of their time, Mos helps students of all backgrounds maximize their aid awards.
“Our mission is to bridge the gap between citizens and government in a way that works with technology today,” Yahyaoui said.
Yahyaoui is applying what she’s learned building a government-fighting NGO to the startup world, and with the support of top-tier investors, she’s well on her way to proving an “uneducated” immigrant woman of color can write a Silicon Valley success story for the masses.
Mos founder and chief executive officer Amira Yahyaoui.
After being forced out of her home country, Yahyaoui fled to France, where she lived as an illegal immigrant and continued to fight against Tunisia’s authoritarian leadership through her blog and an anti-censorship campaign she started online.
When social media sparked anti-government protests across the Middle East, Yahyaoui, still unable to reenter Tunisia, became a face of what was later called the Arab Spring. Her digital prowess, activist reputation and persistent efforts to highlight the Tunisian administration’s human rights abuses quickly made her a face of the movement.
On January 14, 2011, when the protests succeeded in making Tunisia a pioneer of Arab democracy and ended Ben Ali’s reign, Yahyaoi got her passport back and went home, immediately.
Back in Tunisia with newfound freedom, she had an agenda: To hold the governing agency charged with writing a new Tunisian constitution accountable.
Yahyaoui built Al Bawsala, translated as The Compass, an NGO focused on transparency and government accountability. Al Bawsala became one of the largest NGOs in the Middle East, a bona fide success that attracted numerous awards and cemented Yahyaoui’s status as a fearless advocate for human rights, a freedom fighter and one of the most influential Arab women in the world.
“I had to work probably 10 times harder to get to be the self-educated me I am today,” she said. “I saw way too many people getting their education refused and therefore their future ruined.”
Her global standing earned her a seat on the board of the United Nation’s High Commissioner For Refugees Advisory Group on Gender, Forced Displacement, and Protection, as well as the title of Young Global Leader at the World Economic Forum and co-chair of the Davos Conference in 2016, a title she shard with Microsoft’s Satya Nadella and GM’s Mary Barra .
Three years later, with a resume enviable to any dignitary, Yahyaoui is leveraging her unique experience to lure in venture capitalists and use their cash for good.
The Mos dashboard.
Mos is like if Turbo Tax married Typeform and had a baby, Yahyaoui explained. Not dissimilar to Common App, Mos lets students apply to more than 500 federal and state-based aid programs in minutes using a survey that matches them to every grant and scholarship program they qualify for, while simultaneously completing the FAFSA and state aid applications. To ensure every family is getting the most financial support possible, a Mos financial aid advisor reviews each case and negotiates with colleges for higher awards.
“Today, the biggest problem is people think they are not eligible for financial aid just because of how the thing is designed,” Yahyaoui said. “You’re supposed to just go ahead and fill a form that has 200 questions and then send it like a bottle in the sea and wait for months.”
Mos will complete a full-scale launch this summer and eventually tackle other nation’s college financial aid systems thanks to the new infusion of capital and the high-profile relationships Yahyaoui has forged in just one year living in the Bay Area.
Ultimately, it was Yahyaoui’s activism that granted her a ticket into the opaque world of Silicon Valley VC. As it turns out, angel investor Khaled Helioui, a fellow Tunisian immigrant in tech, was familiar with Yahyaoui’s work and when he heard she had relocated to the Bay Area to launch a technology startup, he wanted to know exactly what she was building. Today, he’s a Mos investor and board member and it was his introductions that helped Yahyaoui quickly and skillfully close her seed round.
An early angel investor in Uber, Helioui connected Yahyaoui with his friend Garrett Camp, the very wealthy co-founder and chairman of the ride-hailing giant, who was sold on Mos’s mission right off the bat.
“I think because Garrett is an immigrant, he knows what it is to suffer with bureaucracy,” Yahyaoui said. “He was a huge believer. He actually made it so easy for me because he said, okay, here’s an office, just stay and work.”
She was then introduced to John Doerr, the chairman of the esteemed VC firm Kleiner Perkins, known for his successful bets on companies like Google and Amazon. With Camp and Doerr on board, Mos didn’t struggle to raise additional capital; in fact, Yahyaoui was in an unusual position of being able to reject investors whose values and vision for Mos clearly didn’t align with hers.
Yahyaoui, center, with the Mos team in San Francisco.
Yahyaoui isn’t in the startup business to get rich off students trying to navigate their way through the absorbently expensive process of applying to and attending college. She’s part of a growing class of founders out to prove that you can pair profits with good morals and lead venture-backed values-based businesses.
“I know if I created the same thing as an NGO, I could have already raised $100 million, but I like the accountability of business,” she said. “We can create businesses that are good for people.”
Yahyaoui’s story, from being exiled from her home country at a young age to fighting an authoritarian regime is not one that’s ever been told before in Silicon Valley.
In addition to being a trailblazing human rights advocate, she’s a woman, an immigrant, “uneducated” by Silicon Valley standards and a first-time tech founder that was able to walk into a meeting with John Doerr and walk out with a term sheet.
If she’s successful in building a global edtech business, she’ll be emblematic of the meritocratic culture The Valley has falsely claimed to uphold. Even if she’s not successful, she’ll have torn down barriers for other underrepresented founders and written a success story fitting for this new era of accountability in tech.
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