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GM Will Slash Spending On Robotaxi Unit Cruise Amid Safety Concerns

Nov 29, 2023 - forbes.com
General Motors (GM) plans to significantly reduce spending on its self-driving division, Cruise, following a recall of its robotaxi fleet due to safety concerns. CEO Mary Barra stated that the company needs to rebuild trust with regulators and will be more deliberate once operations resume, focusing on safety, transparency, and accountability.

Cruise, which lost $1.9 billion in the first nine months of this year, launched its robotaxi service in San Francisco last year. However, scrutiny over the safety of Cruise's vehicles increased after an accident involving a woman in San Francisco. The incident led to the recall of 950 vehicles from its fleet and the suspension of its operations nationwide. Despite these challenges, Barra remains optimistic about Cruise's future.

Key takeaways:

  • General Motors plans to significantly reduce spending on its self-driving division, Cruise, following safety concerns and a recall of its robotaxi fleet.
  • CEO Marry Barra stated that the company needs to rebuild trust with regulators and will be more deliberate in its operations, focusing on safety, transparency, and accountability.
  • Cruise has lost an estimated $1.9 billion in the first nine months of this year, according to General Motors.
  • Despite recent setbacks, including the resignation of key executives, Barra remains optimistic about Cruise's future and confirmed that it has GM’s full support.
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