December 2, 2020 2 min read

The American car company General Motors is leaving its relationship with Nikola , an electric vehicle start-up that has recently obtained allegations of fraud.

It was announced that the Nikola Badger , an electric truck and its first model developed to enter the production line will not be able to reach that phase, due to suspicions of fraud raised against them that caused General Motors to cancel the collaboration plans with them. The controversy prompted the resignation of Nikola’s CEO.

In the declaration of the companies, the new understanding treaty that replaces the previous agreement, agreed on September 8, is disclosed.

General Motors , in the modified terms of the agreement, is refusing to produce the Nikola Badger hybrid electric car, as well as considering cost reductions through all of Nikola’s programs.

After different accusations of fraud against the start up, General Motors decided to exit the agreement. This agreement included the manufacture of the Nikola Badger by the American company in exchange for part of its technology and exclusive sales rights.

However, the commitment to supply hydrogen fuel cells for other Nikola Corporation vehicles remains, as well as a possible supply of versatile Ultium batteries.