SILVER SPRING, Maryland: General Motors is teaming up with Microsoft to accelerate its rollout of electric, self-driving cars.
In the partnership announced Tuesday, the companies said Microsoft’s Azure cloud and edge computing platform would be used to “commercialize its unique autonomous vehicle solutions at scale.”
Microsoft joins General Motors, Honda and other institutional investors in a combined new equity investment of more than $2 billion in Cruise, bringing its valuation to about $30 billion. Cruise, which GM bought in 2016, has been a leader in driverless technology and got the go-ahead from California late last year to test its automated vehicles in San Francisco without backup drivers.
Auto companies have been joining forces and bringing technology firms on board to try to spread out the enormous costs — and by nature, risks — of developing self-driving and electric vehicles.
Honda is in on the Cruise project with GM, Volkswagen and Ford have teamed up with Pittsburgh autonomous vehicle company Argo AI, and Hyundai joined with Fiat Chrysler last summer in a deal to use Waymo’s driverless car technology.
Toyota and Uber are also working together, while Amazon skipped over the automaker part of the equation and last summer bought self-driving technology company Zoox, which is developing an autonomous vehicle for a ride-hailing service.
Mass adoption of driverless vehicles — and profits — are still a ways off, said industry analyst Sam Abuelsamid of Guidehouse Insights.
“The reality is that the automated driving landscape is taking much longer to mature that had been anticipated a few years ago,” Abuelsamid said. “It’s probably going to be mid-decade before we start to see significant volumes of these vehicles.”
Abuelsamid added that the importance of adding a company like Microsoft to the mix is its cloud computing power and the ability to analyze data from the vehicles to improve the technology.
“Microsoft is a great addition to the team as we drive toward a future world of zero crashes, zero emissions and zero congestion,” said GM Chairman and CEO Mary Barra. “Microsoft will help us accelerate the commercialization of Cruise’s all-electric, self-driving vehicles and help GM realize even more benefits from cloud computing as we launch 30 new electric vehicles globally by 2025 and create new businesses and services to drive growth.”
General Motors has been aggressively revamping its image, saying the industry has reached a history-changing inflection point for mass adoption of electric vehicles. The 112-year-old Detroit automaker this month unveiled a new corporate logo to signify its new direction as it openly pivots to electric vehicles. It wants to be seen as a clean vehicle company, rather than a builder of cloud-spewing gas-powered pickups and SUVs.
GM scrapped its old square blue logo for a lower-case gm surrounded by rounded corners and an ‘m’ that looks like an electrical plug.
GM teams up with Microsoft on driverless cars
GM teams up with Microsoft on driverless cars
- Auto companies have been joining forces and bringing technology firms on board to try to spread out enormous costs
Lebanon aims to bridge gaps in recovery plan with the IMF
BEIRUT: Lebanese Prime Minister Nawaf Salam stated that his government can overcome differences with the International Monetary Fund regarding a draft law that would allow depositors to recover billions of dollars stuck in the struggling banking sector.
In December, Salam’s government approved a rule known as the Financial Gap Law, which allows depositors to withdraw up to $100,000 each over the next four years, with larger amounts being converted into bonds backed by central bank assets. The cash withdrawals will be financed by local banks and the regulatory authority.
The IMF is holding talks with Lebanon regarding a financing program and seeks the implementation of a package of government measures before committing to providing funding, most notably restructuring banks and repaying depositors’ funds.
In an interview with Bloomberg, Salam explained that the IMF “wants further clarifications on a number of issues,” adding: “In my opinion, any observations or statements that might create a gap can be bridged.”
Lebanon defaulted on about $30 billion in international bonds in 2020, amid the worst economic crisis it has witnessed since the 19th century. Investors see cooperation with the IMF as crucial for achieving a positive recovery.
In previous years, Lebanese banks deposited massive amounts of dollars with the Banque du Liban, but this arrangement collapsed in 2019 as foreign capital inflows stopped and the currency peg collapsed. The central bank was unable to repay around $80 billion to the banks, leading to financial paralysis and the loss of citizens' savings.
IMF reservations
Speaking on the sidelines of the Munich Security Conference, Salam said the IMF is “not completely satisfied” with the “wording concerning the sequencing of claims” in the draft law, which will soon be reviewed by a parliamentary committee.
He added: “It’s also about sustainability, and sustainability is linked to debt sustainability. They want to ensure that sufficient liquidity is available to meet our obligations.”
The legal hierarchy of claims stipulates that local bank shareholders should bear the losses first, followed by creditors, and then depositors. The current draft law stipulates that banks and the central bank share the burden of repaying deposits for both small and large depositors.
The IMF has emphasized that the restructuring plan must align with international principles, including respecting the hierarchy of claims and not imposing losses on depositors before they are imposed on shareholders or junior creditors.
The BDL’s foreign currency reserves currently stand at around $11.9 billion, while gold reserves are estimated at about $45.8 billion.
No agreement on currency value
Salam, a former president of the International Court of Justice, noted that the IMF mission concluded a four-day visit to Beirut on Friday, explaining that he met with the delegation before heading to Germany.
He also said that the central bank considers the government owes it around $16.5 billion, but an agreement has not yet been reached on the value of the currency, and therefore, the precise value of this debt. He warned that finalizing this agreement could affect the government's ability to service its debt.
Salam concluded by saying: “There is an aspect of this file related to the IMF, and we have made it clear that we will also negotiate with them. We hope to reach an agreed-upon figure within a few weeks.”
