Is it just me, or does GM seem to be making a lot noise lately?
First, for the past couple of months, all the speculation has been about how much GM’s IPO is going to debut at – high or low end – nobody seems to know for sure, but I can tell you this…
Everybody’s watching.
Second, last quarter they surpassed Toyota in sales, placing them above the Japanese based car company for the year by almost $300 Million, as they try to make their way back as an American icon…
Which has everybody paying attention to the “Government Owned” motor company.
And thirdly, today, news was reported on Bloomberg that General Electric Co.’s is getting set to buy 25,000 rechargeable cars for their corporate fleet, but here’s the kicker…
About half of them are being purchased from GM.
This. Is. Huge.
If you do the math, 12,500 cars at $41,000 a piece comes out to a grand of…
$512,500,000.00.
I’m sure they’ll get a discount of some kind, but still, this one move could give GM close to, if not half a Billion dollars.
But the question is…
Where is the other half of the cars coming from?
Well, there’s one company that could be on GE’s radar...
It’s a major European automobile manufacturer that is based on advanced battery technology.
They’re using a prototype of a new lithium-based battery, and they’re expecting to be completed in the first quarter of calendar year 2011.
Here’s something else neat about this new battery, the feasibility study was concluded and the product is expected to have broad appeal to both the OEM and aftermarket automobile industry as well.
Meaning all these batteries that burn out in these new electric cars could be turning to this one battery company in order to get their replacements.
Sounds lucrative for everybody involved!
What I do know for sure is that electric cars are about to become big business, one way or another…
And GE’s purchase could be just the beginning!