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From growth to gone: GM’s Cruise robotaxi business is latest growth initiative to falter

Dec 15, 2024 - cnbc.com
General Motors (GM) has decided to end its Cruise robotaxi operations, shifting its focus back to core business areas such as electric vehicles (EVs), software, and personal autonomous vehicles. This move comes after investing over $10 billion in Cruise since acquiring it in 2016, with the robotaxi market proving to be highly competitive and costly. GM plans to integrate Cruise's operations and some of its employees into the company, while also managing additional expenses related to employee separation and repurchasing equity investments. The decision was positively received by Wall Street, as it is expected to save GM over $1 billion annually, which could be redirected towards share buybacks.

Despite the setback with Cruise, GM remains committed to developing autonomous vehicle technology, focusing on its Super Cruise hands-free driver assistance system. The company aims to enhance Super Cruise's capabilities, leveraging advancements in artificial intelligence. GM's decision reflects a broader industry trend of retrenching from ambitious growth initiatives to concentrate on profitable core operations amid economic uncertainties. While GM's robotaxi ambitions have been curtailed, competitors like Waymo continue to expand their operations, highlighting the challenges of scaling a robotaxi network.

Key takeaways:

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  • General Motors (GM) has decided to end its Cruise robotaxi operations, shifting focus to core operations like software, electric vehicles (EVs), and personal autonomous vehicles.
  • The decision to wind down Cruise is expected to save GM over $1 billion annually, which could be redirected towards share buybacks and other core business investments.
  • GM plans to continue developing its Super Cruise hands-free driver assistance system, emphasizing its potential for personal vehicle autonomy.
  • The move reflects broader industry challenges in scaling robotaxi networks, with Waymo remaining a leader in the U.S. market.
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