The U.N. General Assembly on Thursday approved a resolution that could lead to more investment in carmakers, a sign that the industry is finding a way to get back into the used car market.
U.K. car maker Jaguar Land Rover and Japanese car maker Mitsubishi Motors Corp. will each contribute between $20 million and $40 million to the U.s.
GreenTech Automotive, an investment fund run by the United States’ General Motors, is the largest backer, with $25 million in the first half of 2017, according to the fund’s latest filing with the Securities and Exchange Commission.
The U of M’s $100 million in funding for the fund is part of the university’s $1.4 billion commitment to the business, which it hopes will eventually generate $200 million in annual revenue for the university.
The investment is the first to go to the university since the U of L. hired former GM chief executive Dan Akerson as the universitys president in December 2015.
Greentech, which has more than $1 billion in assets under management, is one of several car companies to have committed to the car industry.
Toyota Motor Corp. plans to invest $100,000 a year for the next two years in a fleet that will run on battery electric power, said spokeswoman Nicole Pfeffer.
In March, Fiat Chrysler Automobiles NV also pledged to invest in the carmaker, which makes Jeep, Ram and Ram 1500 pickup trucks.
The $20 billion invested in GreenTech could lead other car makers like Honda Motor Co. and Ford Motor Co., both of which have invested heavily in the used-car business, to step up investments, said Mike Gifford, a global market analyst at Kelley Blue Book.
In its filing with regulators, GreenTech said it has more to offer than just its car brands and is focused on building a global network of dealerships and an infrastructure to deliver its services to customers.
It’s an area where carmakers are finding new ways to expand, Giffords said.
“GreenTech has done a lot of things to accelerate the growth of its product line over the past few years, and it’s clear that this has helped it expand its business and expand the markets for its brands,” he said.
Green Tech’s first investment was in the Toyota brand in 2007, after Toyota decided to start building its own cars.
The company was able to find new markets and a new partner with Toyota, and the two became partners.
In recent years, the investment in Green Tech has grown, Giffin said.
It has grown from a small team of about 15 people in 2009 to more than 40 people today.
Green Technology’s investment in the auto business could help GreenTech continue to grow its network of dealer networks and deliver its vehicles at better prices, Gfford said.
Toyota, which announced in March it will spend $7.8 billion on new, electrified and autonomous cars, will contribute $5.8 million to GreenTech this year, while Honda will provide $1 million in cash and stock.
Honda is the only major carmaker to commit to invest directly in a company.
General Motors invested in GM in 2015, but that investment was made through a private equity fund.
In 2020, General Motors announced it would invest $20.2 billion to buy GM’s battery-electric Chevy Volt plug-in hybrid electric car and plug-ins for its fleet.
GM’s investment was part of an effort to diversify its car lineup by selling the Volt in Europe and in the United Kingdom, where GM is based, but also in the U., where it has the largest fleet of the two automakers.
The automaker also invested $1 in Greentech in 2015 to get a foothold in the automotive market, and in 2020 it announced it was investing $50 million in a new joint venture.
The partnership with GreenTech has expanded GreenTech’s footprint in the market.
GM announced it will start buying back used cars from GreenTech in 2020, and GreenTech expects to be one of the largest buyers of used cars in the world, Gaffords said in a statement.
GM and Greentech are in the early stages of a plan to invest more than a billion dollars in a network of battery-powered hybrid and electric vehicles to provide high-speed, long-distance travel and mobility services.
Green tech is working on a plan that would use its network to provide autonomous vehicles, Gafords said, adding that it expects to launch this project next year.
In the United Nations General Assembly, the U and G governments will work on a resolution to make the use of electric cars a norm in the developed world, and for automakers to make investments in electric vehicles and infrastructure.
The resolution, called the Universal Clean Car Standards, will be presented at the U.-G-C assembly line in Geneva, Switzerland, in December