General Motors has announced it will cut off funding for its majority-owned Cruise robotaxi research, instead folding the company’s technical teams into a new division focused on developing personal autonomous vehicles. The move marks a significant blow to Cruise, which has struggled with safety concerns and regulatory issues since its rise in 2023.
Cruise’s business stalled after a fatal accident involving one of its vehicles, which dragged a pedestrian. The company also faced criticism for not sharing footage of the incident. As a result, regulators forced it off the road.
The news comes as Cruise was seen as a potential comeback candidate. Despite this, General Motors CEO Mary Barra emphasized that combining forces with Cruise would be more efficient and aligns with the company’s capital allocation priorities.
Cruise has accumulated significant operating losses of over $10 billion since GM took control in 2016. The company’s revenue has been minimal, earning less than $500 million.
Source: https://www.sfgate.com/tech/article/sf-robotaxi-company-cruise-folds-gm-cuts-funding-19972259.php