TNI || New Delhi || 27th Oct 2021
BrightDrop, which is General Motors’ electric commercial vehicle business has plans to build a dedicated dealer network that will be responsible to drive growth.
The chief executive of BrightDrop, Travis Katz, has however not confirmed how many dealers will be in the network, however it is assumed that it is going to be smaller than GM’s retail network and will be focused on the urban markets.
The locations that will come up will be customized to serve fleet clients such as Verizon and FedEx. They are the ones to whom GM supplies vehicles on contract. Katz further said that the plan is to set up their own BrightDrop specific dealership network.
Although they are opting to talk with existing GM dealers but can use the services of others as well. GM has plans to double the revenue by 2030, and BrightDrop is a key growth market for them.
GM sees a global e-commerce revenue hitting $ 4 trillion by 2023, and it will grow further to $7.4 trillion in 2030 at a lower profit margin of 20%. Katz adds that GM does not have any plans to spin off BrightDrop or seek any outside support in the form of investors for the business. He further said that GM will not require any external capital to grow the business.
The company is currently structured as a wholly-owned entity, and that is how it will be run. The first vehicle from BrightDrop which will be the EV600 van, will roll out the coming fall, which will be followed by EV410 in 2023.