GM Invests In Virtual Car Company

Compiled ByJill Jusko General Motors has acquired a minority equity stake in Cunningham Motor Co., a virtual car company that is seeking to develop and produce a luxury grand touring car that would compete with Ferrari, Aston Martin and other makers of similar vehicles. As a virtual company, Cunningham's business plan calls for outside suppliers to design, engineer and produce its vehicles. A concept car was shown to the public at the January 2001 North American International Auto Show in Detroit. Cunningham Motor was founded in January 2000 by Briggs Cunningham III and Robert A. Lutz, who joined GM as vice chairman of product development last August. He recently was named to the additional post of chairman of GM North America. Under a governance framework approved by GM's board of directors, Lutz will not participate in transactions between Cunningham Motor and GM but will continue as a member of the Cunningham board of directors. GM also will appoint a member to the Cunningham board.