General Motors dropped a bombshell, announcing it “will no longer fund Cruise’s robotaxi development work,” rolling the division into its broader technical teams.
Cruise has been testing its robotaxis in a number of cities across the US. Despite the $10 billion GM invested in it, the automaker is pulling support.
“GM is committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner,” said Mary Barra, chair and CEO of GM. “Cruise has been an early innovator in autonomy, and the deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.”
“As the largest U.S. automotive manufacturer, we’re fully committed to autonomous driving and excited to bring GM customers its benefits – things like enhanced safety, improved traffic flow, increased accessibility, and reduced driver stress,” said Dave Richardson, senior vice president of software and services engineering.
GM owns roughly 90% of Cruise, but its agreements with other shareholders raise its ownership to more than 97%. The company plans to buy out the remaining 3%, ensuring there are no roadblocks to the restructuring plans.
The automaker plans to use Cruise’s progress to “build on the progress of Super Cruise, the company’s hands-off, eyes-on driving feature, now offered on more than 20 GM vehicle models and currently logging over 10 million miles per month.”
Interestingly, several Cruise employees told TechCrunch that they were “blindsided” by the decision and learned of it at the same time as the media.
Cruise’s Fate Illustrates the Challenges of Autonomous Vehicles
Cruise is one of the leading autonomous vehicle companies, alongside Waymo and Tesla. As a result, the company has coveted brand recognition, giving it a major advantage over startups entering the space.
Unfortunately, despite its lead in the industry, Cruise was at the center of a major accident in 2023, in which a Cruise vehicle failed to avoid a pedestrian that had been previously struck by a hit-and-run driver, hitting the pedestrian again. California suspended Cruise’s license to operate until additional safety measures could be implemented, and the company suspended all testing nationwide, before eventually resuming in some cities in mid-2024, and California in September.
Nonetheless, Cruise’s issues are indicative of the issues that continue to plague autonomous vehicle efforts. Tesla has repeatedly faced issues, including multiple US government investigations, for claims about its Full Self-Driving claims.
Critics have long said that autonomous systems are nowhere near the level needed to replace humans as drivers, lacking the insight and judgment needed to make split-second, life-and-death decisions that come with operating an automobile.
GM killing Cruise’s robotaxi efforts may be the most damning indictment yet of the entire industry.
Cruise’s Fate a Reminder of GM’s Past Decisions
Cruise’s fate may strike a cord with some individuals, reminding them of the company’s handling of the EV1. One of the first EVs on the market, and the inspiration for Tesla, the EV1 was a revolutionary car that GM prematurely killed off, missing the ability to be the dominant EV maker.
There will undoubtedly be comparisons between EV1 and Cruise, with many questioning whether GM is once again being premature in killing off a promising project.
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