GM Invests $300M in Momenta, China's Self-Driving Car Leader

General Motors Invests in Momenta

General Motors has recently joined other leading automotive manufacturers, including Toyota, SAIC Motor, and Mercedes-Benz AG, in investing in Chinese autonomous driving technology company, Momenta.

Strategic Investment in AV Technology

The largest automaker in the U.S. by sales volume, GM, announced on Tuesday a $300 million investment in Momenta. This funding is intended to expedite the development of autonomous vehicle (AV) technology for future GM vehicles specifically within the Chinese market.

Julian Blissett, Executive Vice President of GM and President of GM China, stated that this investment will facilitate the delivery of solutions specifically designed for GM’s customer base in China.

Momenta's Recent Funding Success

This news follows Momenta’s successful completion of a nearly $500 million funding round just six months prior. That round included participation from SAIC, Toyota, Mercedes-Benz AG, and Bosch.

Large-scale fundraising is increasingly common within the autonomous vehicle sector, given the substantial capital requirements. Momenta is progressing towards commercialization, aiming to mass-produce vehicles equipped with its software by the end of the current year.

GM's Broader Technology Investments

This investment represents the latest in a series of aggressive moves by GM into next-generation technologies. In June, GM committed $35 billion to electric and AV initiatives through 2025.

Within the U.S., GM’s autonomous technology efforts are primarily channeled through its subsidiary, Cruise, which has secured a $5 billion line of credit from GM’s financial division.

Strengthening GM's Position in the Chinese Market

GM is actively building strong partnerships in China to establish a significant presence in the world’s largest electric vehicle (EV) market.

The Wuling Mini EV, China’s top-selling electric vehicle, is produced by SAIC-GM-Wuling – a joint venture involving GM, SAIC, and Wuling Motors.

SAIC-GM-Wuling also manufactures vehicles under the popular Baojun brand.

Supportive Chinese Government Policies

Chinese municipal governments have demonstrated a forward-thinking approach towards autonomous driving, as highlighted by executives from Chinese AV startups at TC Mobility in June.

Huan Sun, Europe General Manager at Momenta, explained that local governments in China are incentivized to operate entrepreneurially and are proactive in fostering local economic development.

He further noted the potential of autonomous driving technology to significantly enhance and modernize local economic structures.

Geographic Limitations of the Partnership

While GM did not specify a timeline for the integration of Momenta’s technology into its Chinese vehicles, a company spokesperson confirmed that this partnership will not extend to GM vehicles manufactured or sold in the United States.