According to Reuters, on November 16th, General Motors announced that it is restructuring its electric commercial vehicle business unit, BrightDrop, to reduce costs, and that its CEO, Travis Katz, will resign.

　　Image source: BrightDrop

　　At its inception, the company's executives referred to BrightDrop as a startup within General Motors with operational freedom. After this restructuring, the BrightDrop department launched in early 2021 will no longer operate independently of the parent company, and the team will be fully integrated into General Motors, "our work efficiency will be higher in the future. General Motors stated in a blog post that "fully incorporating BrightDrop into General Motors signifies the beginning of a new chapter".

　　Reilly Brennan, managing partner of Trucks Venture Capital, headquartered in San Francisco, was not surprised by this. Brennan said, "When Brightdrop was established, there was great interest in new electric vehicle manufacturers in the public market. There is no longer such demand in the market, and it makes sense for Brightdrop to be included in General Motors' core areas

　　In October 2021, General Motors announced that it expected BrightDrop's revenue to exceed $10 billion and profit margin to be below 20% by 2030. However, General Motors still plans to increase production of the BrightDrop Zevo model.

　　General Motors only stated that Katz will resign and did not provide a specific departure time or provide a detailed explanation of the reasons for Katz's resignation. Katz did not immediately respond to a request for comment on this news.

　　Katz is a senior technology entrepreneur who joined General Motors from venture capital firm Redpoint Ventures in 2020. In March 2021, Katz described himself as an "unconventional figure in the automotive world" and stated that General Motors gave him "a lot of room" to develop pricing and business strategies.

　　This article is reprinted from Gaishi Automotive Information Network