GM Pulls Funding for Cruise’s Robotaxi Service, Leading to Likely Shutdown

Attention all robotaxi enthusiasts! The future of Cruise’s robotaxi service looks uncertain as General Motors has announced its decision to pull funding from the project. GM is now shifting its focus towards developing autonomous vehicles for personally owned vehicles, leaving the Cruise robotaxi service in a precarious position.

According to a recent announcement by GM CEO Mary Barra, the company’s decision to discontinue funding for Cruise’s robotaxi service was driven by the high cost of scaling the business in a competitive market. The Cruise subsidiary has incurred significant losses, amounting to $3.48 billion in 2023, leading GM to reevaluate its investment in the project.

As a result, Cruise employees will be integrated into GM’s internal teams working on advanced driver assist systems and autonomous vehicle development for personal use. The move is aimed at streamlining operations and aligning capital allocation priorities for GM.

This development is expected to have implications for Cruise, including potential layoffs and a pause in testing activities in Arizona and Texas. GM will need to repurchase its remaining shares in Cruise, which it currently owns 90% of, before determining the next steps for the project.

The decision to pull funding for Cruise’s robotaxi service reflects a broader trend in the autonomous vehicle industry, with other ventures facing similar challenges. Despite setbacks, GM remains committed to its autonomous vehicle initiatives and is expected to achieve cost savings of $1 billion annually following the restructuring.

Stay tuned for further updates on the future of Cruise’s robotaxi service in the rapidly evolving landscape of autonomous vehicles.

For more details, you can read the full article here.