General Motors Company goes public with General Motors Ventures LLC – a venture capital subsidiary designed to help the company identify, design and develop new innovative technologies. General Motors Ventures LLC will be led by Jon Lauckner – GM’s vice president for global product planning, effective July 1.

The initial fund for this venture is $100 million; this will be used for “exploring equity investments in a number of auto?related technologies and business models.”

General Motors was one of the automakers hit by the recession is showing signs of strength. The company last month had a total income of $865 million in the first three months of the year and generated a billion in cash. Domestic sales of its four brands jumped to 32% in May, showing a more demand for crossovers and cars.

This new subsidiary will be launching small investments initially to benefit start-up companies. It is said that the system belonging to the assets will most probably vary and the GM Venture Capital could consider ownership stakes in their finances.

Currently, GM is owned by the U.S. government by 61 percent. The Treasury Department had been informed of the plans to set up the subsidiary but did not request for authorization. In 2008, GM became cash-strapped and they sought $50 billion US government support to prevent bankruptcy. It has since repaid $6.7 billion and the rest of the money is expected to be paid back when GM will be able to offer stocks to the public in the next few months.