The car manufacturer cites competition, time constraints, and costs as challenges in scaling the business.
General Motors announced Tuesday that it is scrapping its Cruise robotaxi program and opting instead to prioritize the development of advanced driver assistance systems in personal vehicles. This strategic realignment will see Cruise LLC and GM technical teams integrate into a single unit focused on autonomous and assisted driving technology.
GM cited the significant time and resources required to scale the robotaxi business, coupled with increasing competition in the market, as the primary reasons for this decision. After the restructuring is completed, anticipated in the first half of 2025, the company expects to reduce spending by over $1 billion annually.
The decision marked a significant shift for GM, which had invested heavily in developing robotaxis through its majority-owned subsidiary, Cruise. The Cruise Origin, a purpose-built robotaxi without pedals or steering wheel, was a key part of this strategy. However, the program faced setbacks, including a crash that led to California regulators banning the Origin from city streets in October 2023. In July, GM had already suspended work on the Origin, foreshadowing the uncertainty surrounding Cruise’s future.
GM will leverage the progress made with its Super Cruise system, a hands-off, eyes-on driving feature currently available on over 20 GM vehicle models and logging over 10 million miles monthly. This technology will form the foundation for the development of fully autonomous personal vehicles.
Focus on ADAS and autonomous driving
The company emphasizes its commitment to delivering an enhanced driving experience for its customers. Benefits such as improved safety, smoother traffic flow, increased accessibility, and reduced driver stress are touted as key outcomes of this strategic shift.
GM owns about 90% of Cruise and has agreements to increase its ownership to more than 97%. The company intends to acquire the remaining shares and, pending board approval, restructure and refocus Cruise’s operations.
The announcement was made in a press release, followed by a conference call for analysts featuring key GM executives, including Chair and CEO Mary Barra, CFO Paul Jacobson, and Senior Vice President of Software and Services Engineering David Richardson.
