GM Pulls Funding from Cruise Robotaxi, Refocuses on Personal Vehicles

General Motors Ends Investment in Robotaxi Business

General Motors has officially decided to stop funding the development of its Cruise self-driving taxi service. The company announced that it will now refocus its autonomous driving efforts on personal vehicles instead of pursuing further growth in the robotaxi market. GM attributed the decision to the increasingly competitive nature of the robotaxi industry and the significant time and resources required to scale the business effectively.

Shift Toward Personal Vehicles

The decision to halt investment in the Cruise robotaxi project marks a significant shift in GM's strategy. The company emphasized that the resources originally allocated to Cruise will now be used to advance its autonomous driving technology for personal vehicles. This move comes as GM faces mounting challenges in the competitive robotaxi market, which has seen major players such as Tesla, Waymo, and Amazon also making strides in autonomous transportation.

Impact on the Cruise Workforce

GM’s decision comes with a considerable workforce impact, as Cruise, a subsidiary of General Motors, had to lay off a significant portion of its staff. In December 2023, Cruise announced that it would cut approximately 900 jobs, which represented about 25% of its workforce. The company has not provided specific details on how many of these employees will be transferred to other parts of GM.

Controversies and Challenges

Cruise, which GM owns approximately 90% of, has faced several challenges over the years, both operational and regulatory. Notably, in October 2023, one of Cruise’s self-driving vehicles hit a pedestrian and dragged her for more than 20 feet, resulting in serious injuries. The company also admitted to submitting a false report to the National Highway Traffic Safety Administration regarding the incident. These events, combined with regulatory challenges in California, where testing permits for driverless cars were halted, contributed to the company’s struggles.

Growing Competition in the Robotaxi Industry

The robotaxi industry is becoming increasingly competitive, with companies like Tesla's Cybercab and Alphabet's Waymo at the forefront. GM's decision to halt its Cruise project comes amid intense competition and regulatory hurdles that have affected profitability.

For more on Wayve's AI-learning autonomous driving tests, see:UK's Wayve Launches AI Learning Autonomous Driving Tests in California