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GM Pulls Plug On EV RoboTaxis

Dec 12, 2024 - mediapost.com
General Motors (GM) has decided to cease funding its Cruise electric robotaxi division, opting instead to focus on developing advanced driver assistance systems with the goal of achieving fully autonomous personal vehicles. This strategic shift involves merging Cruise LLC with GM's technical teams to streamline efforts in autonomous and assisted driving technologies. GM's decision is influenced by the significant time and resources required to scale the robotaxi business in a competitive market, which includes players like Tesla, Amazon, and Waymo. The automaker has invested heavily in Cruise, incurring over $10 billion in losses, and plans to restructure Cruise's operations to reduce spending by over $1 billion annually by 2025.

The decision has left Cruise employees and leadership surprised, with many learning about the changes through internal communications. Cruise CEO Marc Whitten and the team were informed that the company would be integrated into GM's broader driver-assistance initiatives, leaving job security uncertain. Cruise founder Kyle Vogt criticized GM's move on social media, highlighting tensions following his resignation in 2023 after the suspension of autonomous operations. Despite these challenges, GM aims to consolidate its ownership of Cruise and refocus its efforts on enhancing technologies like Super Cruise, which is already operational in over 20 GM vehicle models.

Key takeaways:

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  • General Motors is discontinuing its funding for Cruise's robotaxi development to focus on advanced driver assistance systems and fully autonomous personal vehicles.
  • GM's decision to stop funding Cruise's robotaxi efforts comes after investing $2.4 billion and incurring over $10 billion in operating losses, with minimal revenue in return.
  • The restructuring of Cruise is expected to save GM more than $1 billion annually, with completion anticipated in the first half of 2025.
  • Cruise employees were surprised by GM's decision, and the future of their jobs remains uncertain as Cruise is absorbed into GM's broader autonomous vehicle efforts.
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