GM is giving up on Cruise robotaxis, pivots to personal autonomous vehicles
TechCrunchDec 12
GM Pulls Plug on Robotaxi Unit, Shifts to Driver Assist
Above: The General Motors Co. headquarters located within the Renaissance Center in Detroit, Michigan on April 15, 2024. Image copyright: Jeff Kowalsky/Contributor/Bloomberg via Getty Images
The Facts
General Motors (GM) announced Tuesday the termination of its Cruise robotaxi business. It reportedly plans instead to integrate the unit's technical team into GM's driver-assistance technology development division.
The automaker has invested approximately $10B in Cruise since acquiring it for $581M in 2016. The subsidiary generated less than $500M in revenue during this period.
The Spin
Narrative A
Cruise’s robotaxi service shutdown reflects the turbulent time for the autonomous vehicles sector. This strategic shift allows GM to leverage existing technology while focusing on its core business of personal vehicles. Now it can make more efficient use of capital, and provide immediate customer benefits through enhanced driver-assistance features.
Narrative B
GM's retreat from autonomous vehicles represents a significant setback in the race towards its development of self-driving technology. Competitors including Waymo are continuing to expanding their robotaxi services, while Tesla is developing its autonomous vehicle plans. GM risks being left in the dust.
Metaculus Prediction
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