- GM has effectively decided to shut down Cruise and absorb its teams and autonomous technology.
- It will focus on developing autonomous systems for personal vehicles rather than public use.
- This decision is projected to save GM more than $1 billion in annual expenses.
General Motors had high hopes for Cruise and was planning to revolutionize transportation with the Origin robotaxi. However, fate intervened and a pedestrian was dragged approximately 20 feet (6 meters) following an accident in 2023.
The incident sparked investigations and a major shakeup, which is culminating with today’s announcement that Cruise – as we know it – is effectively dead. As GM explained, they’re realigning their autonomous driving strategy to prioritize development of advanced driver assistance systems for personal vehicles.
More: Cruise Cans Origin Robotaxi Project, Will Focus On Next Chevy Bolt
This dooms Cruise’s robotaxi push and existence as an independent company. In particular, GM plans to combine Cruise with their own teams that are working on autonomous driving technology. The automaker also plainly stated they will “no longer fund Cruise’s robotaxi development work given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market.”
GM only owns around 90% of Cruise, but the company has agreements with other shareholders that will raise its stake to more than 97%. They’re aiming to acquire the remaining shares, so they can effectively kill the company and add the remains into their corporate mothership.
The decision is expected to save the automaker more than $1 billion (£782 / €950 million) annually and everything is expected to be wrapped up in the first half of 2025.
GM CEO Mary Barra emphasized the financial prudence and strategic clarity of the move, stating the company is “committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner.” She added the “deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.”
While Cruise’s robotaxi aspirations are now consigned to history, GM is betting that this pivot to focus on ADAS will deliver a more tangible, profitable path forward.
