GM to stop investing in Cruise driverless vehicle
The business announced that it would integrate its own technical team with Cruise's to develop cutting-edge driver assistance systems.
News, 11 December 2024
General Motors recently announced that it will cease subsidizing its struggling Cruise autonomous vehicle division and withdraw from the robotaxi industry. It will instead focus on creating driver-assistance technologies for personal vehicles that are partially automated, such as its Super Cruise, which enables drivers to remove their hands from the steering wheel.
The business announced that it would integrate its own technical team with Cruise’s to develop cutting-edge driver assistance systems.
In 2016, GM had acquired San Francisco-based Cruise Automation with the goal of creating a lucrative fleet of robotaxis. Despite suffering losses, GM continued investing in autonomous vehicle startup over the years and ultimately purchased 90% of the business from investors.
According to GM shareholder disclosures submitted to the Securities and Exchange Commission, the robotaxi service has accrued over $10 billion in operating losses and less than $500 million in revenue since GM purchased a majority ownership in Cruise for $581 million in 2016.
After one of its autonomous Chevrolet Bolts dragged a pedestrian in San Francisco who was struck by another car in 2023, the carmaker reduced its investment in the company.
In order to fully own the business, the corporation plans to purchase the remaining shares and has agreements to purchase an additional 7% of Cruise.
In order to restructure the business and redirect Cruise’s operations toward driver assistance technologies, GM stated that it will collaborate with Cruise’s leadership. The corporation anticipates a yearly spending reduction of over $1 billion as a result of the restructure.
