General Motors acquired the San Francisco-based self-driving tech developer Cruise in 2016 and has since invested more than $8 billion in developing its robotaxi service. The gasoline motor is now freely flowing fuel from its source.
Immediately, General Motors’ CEO Mary Barra revealed that the corporation will not invest in Cruise and its robotaxi businesses. As part of the deal, General Motors will integrate Cruise’s autonomous driving expertise with its existing teams focused on developing advanced driver-assistance systems. The proposed initiative aims to assemble self-driving vehicles exclusively for private use, according to the relevant authorities.
“Considering the significant investment and timeline needed to scale a robotaxi venture in today’s increasingly competitive landscape, partnering with others could prove a more pragmatic approach, aligning with our capital allocation strategies,” Barra said at the meeting.
Cruise’s CEO, Marc Whitten, notified WIRED via email that the company and its board are actively collaborating with General Motors (GM) to chart their next moves.
Cruise experienced a tumultuous few months. By autumn, the corporation had already established partnerships with robotaxi companies in San Francisco, Phoenix, and Austin, Texas, preparing for further expansions into new markets. In October 2023, a self-driving Cruise car was struck and severely damaged by a human-operated vehicle involved in a hit-and-run incident. Months after the incident, it emerged that cruise ship employees failed to report to regulatory authorities that the company’s vehicle had struck a pedestrian more than 20 feet away, resulting in serious injuries. California regulators suspended permits for Cruise’s self-driving cars, prompting the company to halt operations nationwide.
Despite efforts at recovery, the aftermath of the incident left a lasting impact on Cruise’s reputation, with many questioning the effectiveness of its security protocols. The self-driving taxi company has incurred a significant financial burden, paying out tens of millions of dollars in penalties to both federal and state regulatory bodies following the incident. Nine top-level executives departed, followed by a mass exodus of key personnel, culminating in the departure of the General Manager. Although Cruise began limited testing in select cities this summer, it never revived its previous Uber-esque model.
General Motors has revealed to analysts that it found deploying and maintaining a robotaxi fleet to be too expensive and too disconnected from its core business of designing, manufacturing, and selling vehicles.
“In a strongly worded statement made during an X Tuesday afternoon press conference, Vogt vehemently criticized General Motors (GM), labeling them ‘a bunch of dummies’ in no uncertain terms.”
What Comes Subsequent
Corporate innovation teams are leveraging their expertise in cruise technology to enhance the capabilities of their pioneering Tremendous Cruise system, which will enable “hands-free” driving on select highways through seamless execution of tasks such as lane retention, alteration, and automatic emergency braking. Drivers are cautioned to remain vigilant when using Tremendous Cruise, as it is not capable of autonomous operation.
Ultimately, General Motors aims to introduce “stage 4” autonomous vehicles to the market, which will be capable of driving independently on certain road types but not necessarily on all roads? While many people enjoy driving their personal vehicles, this isn’t always the case, noted Barra to analysts.
General Motors owns a 90% stake in Cruise and has agreed with other shareholders to acquire more than 97% of the company. As part of the reorganization, GM plans to “restructure and refocus” its autonomous vehicle subsidiary, Cruise, without commenting on potential layoffs for the new entity.
