General Motors is leaving the robotaxi business after a year-long pause, citing high costs and increasing competition as reasons for its decision. The company’s Cruise division will stop receiving funding, and its technical employees will be brought in-house to focus on self-driving technology for GM’s directly sold cars.
In a call with analysts, CEO Mary Barra cited the “time and expense” required to scale the robotaxi business. She also mentioned increasing competition from Waymo, which offers its own robotaxi service in several US cities. However, the company’s past high-profile accident in San Francisco still looms over the decision.
GM joins other automakers like Ford Motors and Volkswagen, who once invested heavily in robotaxis but later abandoned their plans. The move leaves Tesla as the only American pure-play automaker competing in the robotaxi business.
The shift away from robotaxis raises questions about GM’s future as a traditional automobile maker. The company now plans to integrate self-driving technology into its own cars, potentially altering its business model.
GM’s decision highlights the challenges of developing complex self-driving technology and managing fleet operations on public roads. As companies like Cruise struggled with safety concerns and high costs, regulators have been keeping a close eye on the industry.
The Road Ahead
With GM out of the robotaxi game, Tesla is poised to take over as the last American carmaker competing in this space. However, it remains unclear how Tesla will compete with Waymo and other players. As self-driving technology becomes more integrated into cars, federal regulators are scrutinizing accidents involving Tesla’s Autopilot features.
The question remains whether car buyers want fully autonomous cars or if driving is what gives a car its value. With GM focusing on integrating Cruise’s technology into its cars, the company may be able to compete with robotaxis in the future. However, this shift also comes with significant costs and risks that will need to be addressed.
General Motors’ decision marks a turning point for the automaker as it navigates the complex world of self-driving technology.
Source: https://fortune.com/2024/12/11/general-motors-pulls-plug-cruise-tesla-robotaxi-race