December 11, 2024 - 13:46
General Motors has announced a significant shift in strategy by discontinuing its Cruise robotaxi business, a once-prominent initiative that has struggled to achieve profitability. The company revealed on Tuesday that it would cease development at this loss-making unit, citing the extensive time and resources required to make Cruise a viable success. The competitive landscape for driverless transportation has also intensified, prompting GM to reassess its priorities.
Since its inception in 2016, GM has invested over $10 billion into Cruise, with expectations that the unit could generate $50 billion in annual revenue by 2030. However, Chief Executive Mary Barra recently described the venture as "expendable." While the technology behind Cruise will not be abandoned, it will be integrated into GM’s existing driver assistance systems unit.
This strategic pivot follows GM's broader restructuring efforts, including a reduction in electric vehicle ambitions and a reorganization of its operations in China. The company is now concentrating on its more lucrative gasoline-powered vehicles, particularly pickup trucks. In the midst of this evolving landscape, competitors like Ford have also scaled back their autonomous vehicle initiatives, while Tesla continues to pursue its vision for robotaxis, and Waymo expands its ride-hailing services.
