General Motors is halting funding for its Cruise robotaxi division to prioritize autonomous vehicle development for personally owned cars. Cruise employees will be integrated into GM’s teams working on advanced driver assist systems, like Super Cruise and autonomous vehicle projects for consumers.
The decision comes after Cruise lost $3.48 billion in 2023, with GM struggling to justify its high costs to shareholders. Testing in Arizona and Texas is paused and potential layoffs or restructuring loom as GM repurchases Cruise’s remaining shares.
This marks a shift in GM’s autonomous strategy, aiming to save $1 billion annually while competing in a turbulent market where ventures like Argo AI have shut down. GM CEO Mary Barra remains committed to selling autonomous vehicles by mid-decade, though that timeline seems uncertain.
Source: The Verge
