BrightDrop, General Motors’ electric delivery vehicle subsidiary, is unlikely follow in the footsteps of many other electric vehicle companies and pursue an initial public offering in the future.
The nascent maker of battery-electric commercial vehicles isn’t in need of any additional funding, BrightDrop CEO Travis Katz told the Automotive Press Association Tuesday afternoon, which is the reason so many of the others go public.
“GM generates a lot of cash flow,” he explained. “I don’t think we need external capital to build this business at this time.”
He noted being owned by GM is what allowed the company to go create, produce and deliver its first vehicle in just 20 months. He called GM’s manufacturing expertise a “competitive advantage,” and that insight and assistance comes because it’s wholly owned by the auto company.
Vehicles on the way
Katz also mentioned the company would establish its own dealer network rather than try to sell through existing GM dealerships or follow Tesla’s lead and sell direct to customers. He didn’t provide too much detail, but suggested it would follow a franchise model, although it would be significantly smaller than GM’s current dealer body.