General Motors (GM) has announced a strategic shift in its autonomous driving development, focusing on the enhancement of advanced driver assistance systems (ADAS) for personal vehicles, after its majority-owned Cruise business experienced losses in the robotaxi initiative.
The company has revealed that it will cease funding Cruise’s robotaxi development.
GM will now direct its resources toward advancing fully autonomous technology in consumer vehicles, building on its Super Cruise feature, which allows hands-free, eyes-on driving.
READ MORE: Amazon-owned Zoox rolls out its robotaxis in San Fransisco
As part of this strategic refocus, GM plans to integrate the technical teams from its majority-owned autonomous unit, Cruise, into the broader GM operations. GM cited the substantial time and capital required to scale the robotaxi business, coupled with intensifying competition in the robotaxi market, as key reasons for this decision to stop the initiative.
In a related move, GM, which currently owns approximately 90% of Cruise, plans to acquire the remaining shares of the autonomous unit. The company has agreements in place that will increase its stake to more than 97%, and GM intends to complete the acquisition, subject to Cruise’s board approval.
Once the repurchase is completed, GM will restructure Cruise’s operations to align with its new focus. GM expects these changes to result in annual savings exceeding US$1 billion, with the restructuring slated to be finalised by mid-2025.
Mary Barra, chair and CEO of GM, said: “Cruise has been an early innovator in autonomy, and 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.”
