General Motors acquires stake in Pure Watercraft
General Motors one of the American automotive manufacturing behemoths has acquired a stake of 25% ownership in a startup business that is focused on making the best in class electric outboard motors for almost every kind of boat that you can imagine. This move from General Motors comes as a result of its commitment towards going all-in on the electrification of its business and services to make them green and eco friendly to the planet earth.
Now before I discuss further this investment/partial acquisition by General Motors in Pure Watercraft. Let me first give you a brief intro about the startup in its own words.
An official snippet about Pure Watercraft: We started this company in 2011 with a belief that boating could be made more enjoyable, accessible, and environmentally friendly than ever before. We truly want to lead a transformation of boating for the next generations to hit the water. A kind of revolutionary watercraft experience, designed and optimized for the way we live and boat now.
This novel, modern approach to motoring sets a new standard for quality and reliability, and our partnerships with hull manufacturers help ensure horsepower on our outboards is used and distributed efficiently to maximize performance. With a smooth ride and a nearly noiseless energy transfer process, you can get peace and quiet on the water even when whipping around at high speed. Plus, the added benefit of a zero-emissions boating experience helps protect the waters for generations to come. End of the snippet.
And enough of introduction about the startup, now more details about the deal between these two companies.
General Motors has basically done this deal to continue its footprint in the space of electric automotive manufacturing and sales. It knows that things can happen faster if it can find the perfectly positioned upcoming startups and join hands with them. A deal in which both parties can benefit from each other in terms of business and growth for years to come.
General Motors also did this deal as a result of growing market share and sales for the outboard engine in the United States. This particular niche of business seems to be growing on a constant growing style graph with at least an estimated market value of $3.4 billion U.S. dollars as of the year 2020.
This acquisition of a 25% stake by General Motors in Pure Watercraft seems to be worth around $150 million U.S. dollars with a variety of investment and collaborative projects included.
Pure Watercraft as part of this deal is said to be getting some engineering and manufacturing at scale expertise from General Motors.
On top of that, General Motors will also be becoming a primary supplier of components to Pure Watercraft in every which way the startup may need them, along with solving their possible supply chain issue in the future.
I personally consider this to be a good move from General Motors to have done a deal like this. This deal actually shows how the company is not just focused on electrifying things on a larger scale but also on niched-down businesses and products like outboard engines for boats.
Kudos to the team behind this deal and wishing the best for Pure Watercraft on their amazing growth as a startup/business.
Thank you for reading this, and God Bless Everyone.
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