May 19, 2020

GM to invest $100mn in self-driving car manufacturing capabilities at two US facilities

GM
General Motors
autonomous vehicles
Self-Driving Cars
Pouyan Broukhim
2 min
GM to invest $100mn in self-driving car manufacturing capabilities at two US facilities

General Motors (GM) has announced that it will invest more than $100mn in its Orion Township and Brownstown facilities that will be used to implement manufacturing capabilities for self-driving cars.

The Brownstown facility will be used to create the roof modules for GM’s self-driving vehicle models, Cruise AV, whilst the vehicles themselves will be built at the Orion Township assembly plant.

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“We’re continuing to make great progress on our plans to commercialize in 2019,” said GM President Dan Ammann. “Our Orion and Brownstown teams have proven experience in building high-quality self-driving test vehicles and battery packs, so they are well-prepared to produce the Cruise AV.”

Since January 2017, the production team at the Orion plant have created three generations of Cruise vehicles that have been tested against the harshest of urban environments such as San Francisco.

The news of this investment comes just a couple of months after GM filed a petition that looked to gain approval from the US government to allow the deployment of its commercial fully autonomous ride sharing fleet next year – a petition that the National Highway Traffic Safety Administration is yet to finish reviewing.

GM also revealed that it would be able to operate competitively within the ride hailing market upon launch, having announced that the initial cost to passengers will be approximately $1.50 per mile – 40% cheaper than current services operated with a human driver.

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May 15, 2021

M&A activity key lever for future tech sector growth

Technology
dealmaking
EY
M&Aactivity
Kate Birch
2 min
With M&A activity in the technology sector soaring, dealmaking is likely to be the key lever for growth as businesses look to recover post-pandemic

Despite the continuing uncertainty of the pandemic, the tech sector has witnessed soaring dealmaking activity over the past year, rocketing in the second half of 2020, with the last quarter of 2020 a record one for M&A activity, and momentum continuing into 2021.

Dealmaking in tech sector soars in past year

And the latest figures bear this out with the number of technology M&A deals totalling US$208.44bn globally in Q1 2021, according to GlobalData. While the US holds top spot both in volume of deals (1034) and total value (US$140.61bn), Europe ranked next with 649 deals (US$44.49bn) with the UK continuing its reign as Europe’s biggest M&A market with 204 deals.

In particular, megadeals – those valued at US$5bn or more – soared in 2020 representing 59% of all global technology sector deal value in 2020, up from 47% in 2019, according to the latest edition of the EY Technology Global Capital Confidence Barometer.

This tech sector trend towards megadeals is backed up by EY’s CCB data, with 16% of tech sector respondents planning to pursue transformative deals valued at US$5bn or more in the near-term.

While technology deal activity “all but stopped at the beginning of 2020 after fluctuating between historic highs and lows, companies pivoted quickly and tech M&A exploded in the second half of the year”, says Barak Ravid, EY Global TMT Leader for Strategy and Transactions. 

M&A activity level for tech sector growth

Looking ahead to the future, technology executives are optimistic, with nearly half (47%) expecting profitability to fully rebound this year, according to CCB data, compared to 23% across all sectors, and with more than half (51%) planning to pursue M&A in the next year in order to sustain growth.

According to Ravid, M&A activity is increasingly becoming a key lever for growth as businesses look to recover.

“To position themselves for future revenue growth, tech companies are now adjusting their M&A strategy to focus more on a target’s business resilience, digital technology alignment and to gain market share through consolidation,” says Ravid.

However, with an increasingly competitive deal market and ongoing geopolitical tensions, the majority of tech execs expect to see more competition in the bidding process for assets over the next year, primarily from private capital.

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