General Motors (GM) has announced the end of its Cruise robotaxi program. Instead, the automaker will focus its efforts to integrate advanced driver assistance systems (ADAS) into personal vehicles.
The Detroit automaker revealed its decision to stop funding Cruise’s robotaxi program on Tuesday, citing the substantial resources required to scale the business and the increasingly competitive robotaxi sector. With the announcement, GM plans to consolidate its Cruise and internal technical teams to streamline its autonomous development efforts.
GM’s new strategy will build upon its Super Cruise technology, a hands-free, eyes-on-the-road driver assistance feature currently available in over 20 GM models. Logging more than 10 million miles monthly, GM says Super Cruise will serve as a stepping stone toward fully autonomous personal vehicles.
“Cruise has been a trailblazer in autonomy. By integrating Cruise’s innovation with GM’s scale and expertise, we’re poised to deliver unparalleled driving experiences to our customers in a disciplined and capital-efficient manner,” said GM Chair and CEO Mary Barra.
The restructuring is projected to save GM over $1 billion annually. GM already owns 90% of Cruise and is pursuing full ownership through shareholder agreements. The consolidation of Cruise’s workforce into GM’s broader technical teams may result in layoffs, although no official announcements have been made.
The decision to end their robotaxi program is not a big surprise. Cruise has faced significant operational and regulatory hurdles, including the suspension of its California permits in 2023 following incidents involving its autonomous vehicles. These challenges, combined with a competitive landscape and high costs, prompted GM to pull the plug.
