GM Signs Non-Binding Deal With Nikola, Replacing Earlier Arrangement
By Micah Maidenberg
General Motors Co. said it signed an agreement to provide Nikola
Corp. with fuel-cell systems the latter company would use in some
of its heavy duty vehicles.
Under what it called a non-binding memorandum of understanding
with Nikola, GM would supply its Hydrotec fuel cell system for use
in two classes of Nikola semi-trucks.
The new deal replaces one from September, GM said. Under that
previous arrangement, the automaker would take an 11% stake in
Nikola and gain the right to nominate a director, while engineering
and manufacturing a Nikola pickup truck.
The Hydrotec system will be engineered and manufactured at GM
facilities in Michigan.
"GM and Nikola will also discuss the potential of a supply
agreement for GM's versatile Ultium battery system for Nikola's
Class 7/8 trucks," GM said in a statement Monday.
In September, a short seller alleged that Nikola was a fraud.
Nikola has called the short seller's report false and misleading.
The company has faced probes by federal authorities into those
Nikola aims to sell zero-emission electric trucks.
Write to Micah Maidenberg at email@example.com
(END) Dow Jones Newswires
November 30, 2020 08:45 ET (13:45 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.