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General Motors Cruise, Autonomous-Car Unit, Gets Funding for Shuttle

General Motors Financial is providing a $5 billion credit line to help Cruise, GM's autonomous-vehicle unit, build a shuttle, called Origin.
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Cruise, the autonomous car company majority-owned by General Motors  (GM) - Get Report, has garnered a $5 billion credit line from GM’s finance unit, GM Financial.

The money will be used to help Cruise build its electric-battery autonomous shuttle, Origin. Cruise has started building about 100 of the units, Bloomberg reports.

GM shares recently traded at $60.74, little changed on a down day for the market.

“GM is working with Cruise and providing a $5 billion line of credit so we can efficiently finance the expansion of our fleet as we scale up over the next few years,” Cruise Chief Executive Dan Ammann wrote in a blog on Tuesday.

“This bumps up Cruise’s total war chest to over $10 billion as we enter commercialization.”

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Cruise’s competitors for autonomous vehicles include Alphabet’s  (GOOGL) - Get Report Waymo and Amazon.com’s  (AMZN) - Get Report Zoox.

In other GM news, the Detroit auto giant earlier this month said it expected first-half earnings to be "significantly better" than previous forecasts, as semiconductor shipments improved and plants around the country returned to full capacity.

GM said it's accelerating the production of large and medium-sized pickups in the U.S., following several plant shutdowns linked in part the global shortage in semiconductor supplies. But the company also noted that some facilities will continue to be affected into the summer months.

Earlier this year, GM warned that chip shortages would cuts its 2021 earnings by as much as $2 billion.

In May, GM and Lockheed Martin  (LMT) - Get Report unveiled a partnership to work with NASA to develop a new design for lunar-transport vehicles.