GM-Backed Cruise Said To Be In Talks To Acquire Voyage

Cruise, the self-driving vehicle company majority owned by General Motors (GM), is in discussions to buy Voyage, an autonomous technology startup, Bloomberg's David Welch, Mark Bergen, and Ed Ludlow reported, citing people familiar with the matter. The companies are in serious talks, though no agreement is imminent, the authors say. If a deal is reached, it would combine Cruise's engineering and software capabilities with Voyage's presence in the retirement community market, the authors noted.

SECOND BATTERY FACTORY IN U.S.

In an effort to expand its investment in electric vehicles, GM is considering building a second battery factory in the U.S. with joint-venture partner LG Chem, The Wall Street Journal's Ben Foldy and Mike Colias reported. A GM spokesman confirmed to The Journal that the companies are exploring building a second battery-cell plant and said a decision could come in the first half of this year.

Earlier this week, the company extended plant shutdowns due to semiconductor shortage. "GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including full-size trucks and SUVs for our customers. GM has not taken downtime or reduced shifts at any of its truck plants due to the shortage. We continue to work closely with our supply base to find solutions for our suppliers' semiconductor requirements and to mitigate impacts on GM... Our intent is to make up as much production lost at these plants as possible. We contemplated this downtime when we discussed our outlook for 2021 last month," the company said.

FOXCONN DEAL 'CHANGED NARRATIVE'

Wolfe Research analyst Rod Lache upgraded Fisker (FSR) to Peer Perform from Underperform with a price target of $30, up from $21. The company's memorandum of understanding with Foxconn to form a joint-venture to co-develop an electric vehicle that will use the Fisker brand "changed the narrative," Lache told investors in a research note. The analyst noted that the vehicle is expected to launch by fourth quarter of 2023, and Foxconn is targeting 250,000 units. While Lache acknowledged that there is still "significant execution risk" with Foxconn, he argued that the arrangement helps address a number of investor concerns, including a larger market opportunity, the potential for lower costs, and partnering with a company that has "deep pockets."

ON THE SIDELINES

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William K. 2 months ago Member's comment

Battery electric vehicles will still demand capabilities that the present grid and generating systems do not yet have, So there will be a few problems.