GM spin-off company will make electric delivery vans with ‘Tesla killer’ battery

GM spin-off company will make electric delivery vans with ‘Tesla killer’ battery that gives them a 250-mile range, the automobile manufacture reveals at CES

  • GM announced a new business unit Tuesday at the Consumer Electronics Show 
  • BrightDrop will provide delivery companies with vehicles and other products
  • Its first product is a battery-powered pallet that moves packages out of the van
  • The main product is the EV600 – an all-electric delivery van set for 2022
  • The van has a 250-mile range and tops speeds of 170 miles per hour
  • FedEx is BrightDrop’s first contract, which will receive 500 pallets this year 

GM announced a spin-off company that is a ‘one-stop shop ecosystem’ to speed up shipping and ease the delivery process.

Called BrightDrop, it was revealed at the Consumer Electronics Show along with the business unit’s all-electric vehicle with a range of 250 miles and battery-powered delivery pallet.

The EV600 delivery van is GM’s first commercial vehicle to use its in-house next-generation Ultium battery system that has been poised as ‘a Tesla killer.’

BrightDrop is also working on an electric delivery pallet, EP1, which features the same battery system and will be used by workers to transport packages to and from the van.

The news comes months after GM committed to spending $27 billion on battery-powered vehicles through 2025 and just days after the firm redesigned its logo to reshape its image as a clean vehicle company.

Scroll down for video 

The EV600 (pictured) delivery van is GM’s first commercial vehicle to use its in-house next-generation Ultium battery system that has been poised as ‘a Tesla killer’

Mary Barra, GM Chairman and CEO Mary Barra, said ahead of the formal debut of BrightDrop at CES: ‘BrightDrop offers a smarter way to deliver goods and service.’

‘We are building on our significant expertise in electrification, mobility applications, telematics and fleet management, with a new one-stop-shop solution for commercial customers to move goods in a better, more sustainable way.’

The EV600 can hold up to 10,000-pounds payload and reach top speeds of 170 miles per hour.

The vehicle is set to be developed later this year, with the first units delivered in 2022.

GM announced a spin-off company that is a 'one-stop shop ecosystem' to speed up shipping and ease the delivery process

The news comes months after GM committed to spending $27 billion on battery-powered vehicles through 2025 and just days after the firm redesigned its logo to reshape its image as a clean vehicle company

GM announced a spin-off company that is a ‘one-stop shop ecosystem’ to speed up shipping and ease the delivery process. The news comes months after GM committed to spending $27 billion on battery-powered vehicles through 2025 and just days after the firm redesigned its logo to reshape its image as a clean vehicle company

The EV600 can hold up to 10,000-pounds payload and reach top speeds of 170 miles per hour. The vehicle is set to be developed later this year, with the first units delivered in 2022

The EV600 can hold up to 10,000-pounds payload and reach top speeds of 170 miles per hour. The vehicle is set to be developed later this year, with the first units delivered in 2022

BrightDrop is also working on an electric delivery pallet, EP1, which features the same batter system and will be used by workers to transport packages to and from the van

BrightDrop is also working on an electric delivery pallet, EP1, which features the same batter system and will be used by workers to transport packages to and from the van

The van also includes a security system and the back is fitted with motion sensors to keep packages in place. 

Delivery drivers operating the new van will also have access to a number of advanced driver assist features such as blind post detection, lane keep assist and parking assist. 

The electric-powered pallet, EP1, is designed with adjustable shelving and lockable cabinet-style doors, according to The Verge.

It can also haul up to 23 cubic feet of cargo and 200-pounds of goods. 

Fletcher says EP1 was designed to address a major of how ‘packages are often strewn across sidewalks.’

FedEx is set to receive 500 of the electric pallets early this year and, according to GM, is also interested in purchases an unspecific amount of EV600 delivery vans

FedEx is set to receive 500 of the electric pallets early this year and, according to GM, is also interested in purchases an unspecific amount of EV600 delivery vans

‘We saw this as a solution to create a completely different environment for delivery really to help package touch points, reduce errors, reduce physical strain on those delivering the goods, help optimize curb time, and help reduce overall operational costs for businesses,’ Fletcher explained.

BrightDrop received a large order from FedEx for EP1, which was previously tested by the delivery company that saw a 25 percent increase in productivity, according to Pan Letcher who is GM’s head of global innovation.

FedEx is set to receive 500 of the electric pallets early this year and, according to GM, is also interested in purchases an unspecific amount of EV600 delivery vans.

‘We have letters of intent signed from a number of other customers, and we want to be talking to you about those in the not too distant future,’ said Fletcher.