GM to End Funding for Cruise Autonomous Vehicle Unit and Retire from Robotaxi Market
General Motors announced on Tuesday that it will be stepping back from the robotaxi business and will no longer be funding its Cruise autonomous vehicle unit. Instead, the Detroit automaker plans to shift its focus towards developing partially automated driver-assist systems for personal vehicles, like their Super Cruise technology which allows drivers to take their hands off the steering wheel.
GM cited the considerable time and resources needed to scale the robotaxi business, along with the increasingly competitive market, as reasons for this decision. They will now combine Cruise’s technical team with their own to work on advanced systems to assist drivers.
The automaker initially bought control of Cruise automation based in San Francisco back in 2016 with hopes of creating a profitable fleet of robotaxis. However, after years of substantial investments, GM has faced significant losses. Despite investing billions in Cruise, the robotaxi service accumulated over $10 billion in operating losses and brought in less than $500 million in revenue since its acquisition.
Following an incident in 2023 where an autonomous Chevrolet Bolt was involved in an accident with a pedestrian, Cruise faced regulatory issues in California and underwent leadership changes and layoffs. GM CEO Mary Barra shared that the new unit will now focus on developing systems for personal vehicles that can drive autonomously in specific circumstances.
In contrast to GM’s move, other companies like Alphabet Inc.’s Waymo are expanding their autonomous vehicle services. Waymo recently announced plans to test driverless Jaguars in Miami next year and start offering rides for a fee in 2026. Similarly, Aurora Innovation aims to launch fully driverless semis for freight transport on Texas freeways in April.
While Tesla CEO Elon Musk has set ambitious goals for autonomous vehicles with plans for autonomous Tesla models by next year and robotaxis without steering wheels by 2026, concerns have been raised about the readiness of such technology. An investigation by the National Highway Traffic Safety Administration into Tesla’s Full Self-Driving system highlighted issues related to low visibility conditions, with reports of crashes occurring.
Overall, GM’s decision marks a significant shift in the autonomous vehicle landscape, as the challenges of developing this technology become increasingly apparent. With various companies forging ahead with ambitious plans for autonomous vehicles, the road ahead for this industry remains full of hurdles and opportunities alike.
