General Motors Co. has announced it is shutting down its autonomous ride-hailing service, Cruise, citing high costs and development hurdles as a major reason for the decision. The move marks a significant reversal for the company, which had invested over $9 billion in Cruise since its acquisition in 2016.
CEO Mary Barra said the company’s goal of transforming itself into a multi-platform technology company with robotaxi fares and subscriptions was “aspirational” but ultimately unachievable due to the financial burden. The decision will save GM more than $1 billion in annual costs, according to the company.
The retreat comes as the autonomous ride-hailing industry faces increasing competition from Waymo and Tesla. Despite having a leadership position in autonomy just a few years ago, Cruise struggled with regulatory issues and safety concerns, including an incident last year where one of its cars dragged and injured a pedestrian.
GM will instead focus on developing advanced safety systems for its vehicles and potentially offering autonomous driving as a feature on future models. The company’s SuperCruise assisted driving system is expected to be further enhanced, providing a glidepath to eventually debut a fully driverless system.
The decision marks a significant departure from GM’s 21st-century dreams of tapping into new revenue streams by offering mobility as a service. The move also comes after Cruise founder Kyle Vogt resigned and the company temporarily grounded its fleet nationwide following a pedestrian accident.
Source: https://finance.yahoo.com/news/gm-calls-quits-mary-barra-004909597.html