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DETROIT and ANDERSON, Ind. — Tuesday marked the first funding action by the newly formed General Motors Ventures, a strategic relationship between Bright Automotive and General Motors.

The agreement with the Indiana automaker is intended to help accelerate Bright's production of the IDEA, a plug-in hybrid commercial vehicle.

Executives explained the companies signed a memorandum of understanding in July and General Motors Ventures provided funding to Bright this week. The two companies intend to complete the formal agreements later this year.

Upon completion of the agreements and other terms, officials noted General Motors Ventures would have a minority stake in Bright Automotive and Bright would have access to GM technologies and advanced engine and transmission systems for its vehicle.

Executives went on to stress that funding through GM Ventures can allow Bright to begin ramping up the development of the production program for the IDEA in the third quarter of this year. Meanwhile, they said Bright continues to seek a low interest loan through the Department of Energy's ATVM program.

Overall financial terms of Tuesday's announcement were not disclosed.

In developing the IDEA, Bright reportedly "started with a clean sheet of paper, listened to customers, and took a novel approach to product development that focused on light-weighting, aerodynamics and a highly efficient drivetrain." The company thinks the result is a multipurpose vehicle for business fleets — a unit management contends could be the first designed to be highly efficient and provide a clear economic benefit.

The companies intend for the IDEA to deliver a positive total cost of ownership to fleet customers by providing significantly greater fuel efficiency than current fleet vehicles in its class.

The IDEA can operates in electric mode for 40 miles before switching to an estimated 36-mpg hybrid mode for 100-plus mpg potential based on daily driving behavior. Bright Automotive provides more details on the IDEA at www.brightautomotive.com.

"This relationship is an important step forward for Bright, and a strong endorsement of our highly experienced automotive team and our incredible vehicle," stated Reuben Munger, Bright Automotive's chairman and chief executive officer.

"With this deal, Bright gets financial support that puts us on the fast-track toward mass production of the IDEA. And perhaps just as importantly, we gain a strategic partner that is a world leader in electrification," Munger continued.

Jon Lauckner, president of GM Ventures, discussed how the relationship is prudent decision by the automaker's new investment outlet.

"Funding early stage startup companies is a new way of doing business at GM to accelerate the introduction of innovative technology to support our core automotive business and give us a competitive advantage" Lauckner insisted.

"In this case, our funding of Bright Automotive will accelerate the introduction of advanced propulsion and light-weight technologies in the commercial vehicle market," he continued.

Another member of Bright's executive team elaborated about how crucial this agreement is. Michael Brylawski is executive vice president.

"We talked with several leading automakers, but GM clearly had the right vision, the most capable technology, and the closest alignment with our business approach," Brylawski declared.

"We are thrilled to work with GM to create American jobs, stimulate technology development, and build an innovative American vehicle that will help reduce oil dependence and cut costs for businesses," he concluded.