GM gives up on loss-making Cruise robotaxi business

STORY: General Motors is giving up on its Cruise robotaxi business. The auto giant said Tuesday that it would end development at the loss-making unit, which had once been a top priority. GM said too much time and resources would be required to make Cruise a success. It also cited an increasingly competitive market for driverless cabs. The company has spent over $10 billion on Cruise since 2016. Only last year, Chief Executive Mary Barra had predicted the unit could make $50 billion in annual revenue by 2030. But on Tuesday she called it 'expendable.' Now the technology won’t be abandoned, but will be folded into GM’s unit working on driver assistance systems. There was no word on how many Cruise staff would be able to move over to the parent firm. The change comes shortly after GM scaled back its plans for electric vehicles. That saw it restructure its China business, and sell its stake in one battery joint venture. All that left the firm focused on the more profitable business of making gasoline-powered pickup trucks and other large vehicles. Among rivals, Ford began winding down its AI-driven cars unit two years ago. But Tesla boss Elon Musk remains bullish on autonomous vehicles, having recently unveiled his firm’s proposed future robotaxi. Meanwhile, Waymo is still set to expand. The Alphabet unit said last week it would soon start ride-hailing services in Miami, and has recently raised billions in new funding.

Topics

GM to Shut Down Its Cruise Robotaxi Project

The company said it would now focus its efforts on developing fully autonomous vehicles for personal use.
The New York Times - 6h
GM Ends Cruise Robotaxi Efforts and Steers Its Self-Driving Tech to Passenger Cars

The Detroit auto giant says it’s halting its investment in Cruise’s robotaxi project at $4.4 billion, and integrating its technology into its own vehicles’ autonomous driving features.
Inc. - 9h
General Motors Scraps Cruise Robotaxi Program

Carmaker cites competition, time and costs needed to scale the business.
The Wall Street Journal - 23h
GM to retreat from robotaxis and stop funding its Cruise autonomous vehicle unit

General Motors says it will retreat from the robotaxi business and stop funding its money-losing Cruise autonomous vehicle unit
ABC News - 1d
General Motors pulls plug on robotaxi business

After the announcement, the project's co-founder posted on social media "GM are a bunch of dummies."
BBC News - 20h
GM exits robotaxi market, will bring Cruise operations in house

General Motors will no longer fund its Cruise division's robotaxi development, effectively pulling out of the market.
CNBC - 1d
How GM’s self-driving strategy is evolving as it gives up on Cruise business

General Motors has bailed on its Cruise robotaxis, citing the amount of time and money needed to scale the business and an “increasingly competitive” market for autonomous vehicles.
MarketWatch - 1d