General Motors (GM) has announced that it will stop developing a commercial robotaxi business. Instead, the Cruise subsidiary will be integrated into the main company activities to develop driver assistance technologies and fully autonomous private vehicles.
The decision marks a significant turning point for GM, which Cruise sold in March 2016 for a billion dollars acquired and has since invested billions in the company. GM cites the high time and financial investment required to scale the business as well as the increasingly competitive robotaxi market as the main reasons for the strategy change.
The restructuring is expected to cut annual spending by more than $1 billion. GM already owns about 90 percent of the company’s shares and plans to increase this to over 97 percent. Previous investors have included well-known companies such as Microsoft, Walmart and Honda.
The decision follows a series of setbacks for Cruise. In October 2022, a serious incident occurred in which a robotaxi buried a pedestrian and dragged along. This led to investigations, layoffs and loss of operating licenses in California. In November, Cruise also admitted to filing a false report in connection with a safety investigation and accepted a $500,000 fine.
GM CEO Mary Barra emphasized that the company remains committed to autonomous driving technologies and is only adjusting the strategy to better meet customer needs. Cruise founder and former CEO Kyle Vogt sharply criticized the decision, calling GM “fools.”
The industry is eagerly watching how GM’s new strategy will evolve in the rapidly evolving world of autonomous mobility.