General Motors says it will walk away from the robotaxi business and stop funding its money-losing Cruise autonomous vehicle division.
according to a press release In a statement released Tuesday and a subsequent conference call that included GM chair and CEO Mary Barra, the Detroit automaker will instead focus on the development of partially automated driver-assistance systems like its Super Cruise, which allows drivers to interact with others from the steering wheel. Allows you to remove your hand.
GM said that “given the increasingly competitive robotaxi market as well as the substantial time and resources required to grow the business, it will exit Robotaxis.”
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The company said it would combine Cruise's technology team with its own technology team to work on advanced systems to assist drivers.
“The Cruise board of directors and the Cruise leadership team are collaborating closely with GM on next steps,” Cruise CEO Mark Whitten told CBS News.
GM Bought San Francisco-based start-up Cruise Automation in 2016 For at least $1 billion with high hopes of developing a profitable fleet of robotaxis. At the time, Cruise Automation was with Google One of the few companies receiving a permit from the State of California to test cars,
Over the years GM invested billions in the subsidiary and eventually purchased 90% of the company from investors.
GM also announced plans to generate $1 billion in annual revenue for Cruise by 2025, but reduced spending at the company after one of its autonomous Chevrolet Bolts. A pedestrian was hit by another vehicle on a San Francisco street in 2023,
The California Public Utilities Commission accused the company of concealing details of the accident and suspended Cruise's driverless testing permitShortly thereafter, Cruz took all of its driverless cars off the road nationwide.
Event The company was widely criticized And its autonomous vehicles. Cruise has already come under fire for several confrontations that have cost the company losses Cut down its operating robotaxi fleet during the summer of 2023.
problems Purge of its leadership began – except for layoffs laid off almost a quarter of its workforce,
Company in January this year Offered to pay $75,000 to settle investigation Cruise in by California state regulators Failure to disclose details regarding collision.
Despite his troubles, Cruz was still attempting to return to viability. In June, General Motors named Mark Whitten – one of the lead engineers behind the Xbox video game console – As the new chief executive of the divisionIn August, Cruise announced its robotaxis Will join Uber's ride-hailing service in 2025 as part of multi-year partnership Bringing together two companies that were once set to compete for passengers.
However, recent Cruise developments have been costly for GM. In September, National Highway Traffic Safety Administration officials announced that the division would Pay a fine of $1.5 million As part of a consent order. Last month, Cruz Additional $500,000 fine agreed to After admitting to filing a false report following a San Francisco pedestrian accident.
According to a statement from the U.S. Attorney's Office for the Northern District of California, the San Francisco-based company entered into a deferred prosecution agreement in which Cruise pleads guilty and accepts responsibility.
“Companies with self-driving cars that want to share our streets and crosswalks must be completely truthful in their reports to their regulators,” Martha Borsch, head of the U.S. Attorney's Office of the Criminal Division, said in a statement.