- General Motors’ electric delivery subsidiary BrightDrop will become part of Envolve, the automaker’s commercial products and services unit, bringing together the automaker’s digital offerings, GM said in a press release last week.
- BrightDrop CEO Travis Katz will also leave, but GM did not provide a date or a reason for his departure, Reuters reported Thursday.
- In an emailed statement, GM said the move would improve efficiency, reduce complexities and streamline the automaker’s commercial fleet and digital offerings.
Launched in January 2021, GM originally planned for BrightDrop to operate independently as a wholly owned subsidiary with the speed and agility of a tech startup as it developed commercial electric trucks and built out the automaker’s commercial logistics business.
The automaker tasked BrightDrop with developing EVs, software and services for logistics customers. BrightDrop customers, including Walmart, FedEx, Ryder, DHL and others, can now access these services through Envolve.
“We are committed to helping our fleet customers drive their businesses forward,” Rory Harvey, executive vice president and president at GM North America, said in a statement. “Our innovative commercial solutions and EV vehicle options ranging from the Chevrolet Bolt EV to the BrightDrop Zevo are all available through GM Envolve. This gives our customers one stop shopping for all their commercial needs.”
Earlier this year, Ryder announced plans to add 4,000 BrightDrop EVs to its fleet through 2025, ordering 200 vans for 2023. Walmart reserved 5,000 BrightDrop vehicles last year.
GM recently paused production of the BrightDrop Zevo electric vans due to battery module supply shortages. Production, however, is slated to restart in the spring and will be supported by a new battery module line at GM’s CAMI Assembly in Canada, which will also supplement EV production at other GM plants, the automaker said in an email.
With the reorganization, BrightDrop’s electric delivery vans, the Zevo 600 and Zevo 400, will be part of Envolve's commercial fleet offerings.
When GM announced BrightDrop in 2021, the company estimated the combined market opportunity for parcel and food delivery and reverse logistics would be worth over $850 billion in the U.S. by 2025.