General Motors Invests in Electric Bus Company

General Motors (NYSE: GM), the world’s second largest auto-manufacturer has made a $6 million investment in Proterra, a company that makes electric buses.

Founded in 2004, Colorado based Proterra's mission is to design and manufacture advanced technology for heavy duty vehicles powered by clean domestic fuels. Since its inception, Proterra has become one of the “leading innovators of zero emission commercial vehicle solutions”.

According to Proterra, it has been recognized by the California Air Resources Board as “the first company that is currently delivering a full size transit vehicle that meets California’s Zero Emission Bus Rus Rules.”

Proterra's EcoRide BE-35 electric bus averages 24 mpg (diesel equivalent) in service, a more than 600% improvement over a typical diesel bus. Centrally located charging stations will enable the buses to complete longer journeys, although they can travel up to 40 miles on one short charge alone.

The investment by GM, part of a larger fund investment of $30 million, will go towards the completion of federal validation testing of the bus as well as the manufacturing of additional pilot fleets.

Last year, GM invested in a company producing advanced lithium-ion battery technology and in 2010 it funded car company Bright Automotive to develop hybrid vehicles for commercial and government sectors.