General Motors takes full control of Cruise robotaxi venture
General Motors (GM) has completed its acquisition of Cruise, the autonomous vehicle business, as part of a strategic pivot to developing autonomous technology for personal vehicles instead of robotaxis.
The auto giant plans to integrate Cruise's technology into its existing Super Cruise system, which enables hands-free driving across 750,000 miles of roads in North America. The Super Cruise feature is already available in over 20 GM vehicle models.
The complete merger of the two entities will lead to a substantial reduction in the workforce, with a spokesperson for Cruise confirming to Reuters that staff will be cut by 50%.
Sources familiar with the matter told the news agency that nearly 1,000 employees were laid off as part of the acquisition process.
GM senior vice president of software and services engineering Dave Richardson said: 'By combining the specialised technology and talent at Cruise with our team developing Super Cruise, we'll have the ability to accelerate our work on both assisted-driving and autonomous driving.
'We look forward to teaming with Cruise to accelerate our work together.'
This move comes after GM revealed in December that it would cease funding the Cruise robotaxi business.
GM's decision to cease development of robotaxis was part of a broader internal cost-cutting programme, with the aim of cutting annual costs at its autonomous vehicle division from $2bn to $1bn by mid-2025.
GM cited the 'considerable time and resources that would be needed to scale the business' and the pressures of an increasingly competitive market as the reasons.
Since 2016, GM has invested over $10bn in Cruise, with high hopes for its potential.
In 2023, CEO Mary Barra projected that Cruise could generate $50bn in annual revenue by 2030. However, the division's financial challenges and the complexity of operating a robotaxi fleet ultimately made it unsustainable.
Soon after the announcement, Honda Motor Company decided pull out of robotaxi partnership GM.
The robotaxi industry remains highly competitive, with players such as Alphabet's Waymo, Baidu, and Tesla continuing to invest heavily in autonomous technology.
However, the high costs and technological challenges associated with fully autonomous systems have prompted several automakers to reassess their strategies.
"General Motors takes full control of Cruise robotaxi venture" was originally created and published by Just Auto, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
2 hours ago
- USA Today
GM pledges $4 billion in new US manufacturing investments
GM pledges $4 billion in new US manufacturing investments Show Caption Hide Caption General Motors: History, innovation, and legacy Learn about the rich history and notable innovations of General Motors, from its founding in 1908 to its leadership in electric and autonomous vehicle technology. Two popular Chevrolet models will move to U.S. plants from Mexico. The plan is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion Assembly in Michigan early 2027. GM also is retooling its Fairfax Assembly plant in Kansas and the Spring Hill Manufacturing plant in Tennessee. General Motors will invest $4 billion in three U.S. manufacturing sites over the next two years to prepare for changing production slated to begin in 2027. Two popular Chevrolet models also will move to U.S. plants from Mexico as part of the shift. As part of the announcement on June 10, GM also confirmed reports that it has no current plans to produce electric vehicles at its Michigan Orion Assembly plant. Instead, the company will produce gas-only vehicles at the plant after its retooling. The Chevrolet Blazer also is slated for a refresh, the company spokesman confirmed, and its production will move from Mexico to the United States by 2027. The new investment will not reduce any production in North America, according to a company spokesman, and does not include previously announced U.S. investment as part of its 2023 UAW labor contract. Sam Abuelsamid, vice president of market research at Telemetry, said his interpretation of the news is that GM's production changes come as a response to President Donald Trump's tariffs. Trump imposed 25% tariffs on imported vehicles and 25% tariffs on many auto parts imported into the United States earlier this year. On May 1, GM lowered its 2025 guidance, saying tariff expenses are likely to eat up to $5 billion in previously expected profits. 'They won't say it outright, but it's almost certain that they're moving production from Mexico to the U.S.,' he said, 'You're looking at between 400,000 and 500,000 more units in the U.S. They're not expecting to sell that many more vehicles in the U.S.' Automotive industry moves: General Motors commits $888 million to build next-gen V-8 engine in New York Orion Assembly changes GM planned to relaunch Orion Assembly after a $4 billion retooling and expansion to assemble the Silverado EV and GMC Sierra EV later this year for late 2025 model year production, but that was pushed ahead six months to mid-2026. Previously, Orion made the Chevrolet Sonic and Bolt EVs, though production of those vehicles ended there last year. The plan now is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion in early 2027, according to the company. Also by then, GM's Factory Zero in Detroit-Hamtramck will serve as the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ and GMC Hummer EV pickup and SUV. Praise for production changes GM's production announcement was met with near-universal praise from the White House, the United Auto Workers union and Michigan politicians on both sides of the aisle. 'No president has taken a stronger interest in reviving America's once-great auto industry than President Trump, and GM's investment announcement builds on trillions of dollars in other historic investment commitments to Make in America,' White House spokesman Kush Desai said in a statement. 'The One, Big, Beautiful Bill's tax cuts, pro-growth policies, and full expensing of equipment investments will only turbocharge this resurgence under President Trump.' Trump's 'Big, Beautiful' tax bill proposes, among other things, to kill the electric vehicle tax credit by the end of this year and penalize hybrid and electric vehicle owners with annual fees to compensate for lost revenue customers would have paid in gas tax. UAW President Shawn Fain said in a statement that the union had said for months that the auto industry could utilize excess capacity at U.S. auto plants and invest billions into factories, communities and American autoworkers. 'While other companies drag their feet, GM is showing that strategic auto tariffs work with a massive $4 billion investment that will create thousands of good paying union jobs. Thanks to the dedication of our members, who have been speaking up about the damage done by bad trade deals, we are finally starting to see real progress,' he said. 'It's time to invest in blue collar America, and GM is showing how it's done. This is just the beginning.' U.S. Rep. and House Republican Conference Chairwoman Lisa McClain, R-Bruce Township, said in a statement GM's decision follows a series of economic moves made by the Trump administration aimed at reversing decades of industrial decline. The Orion Assembly plant is located in McClain's congressional district. 'This investment is a game-changer for our district and a big win for hard-working Michiganders,' McClain said. 'For months, we have said the president's efforts would pay off and more companies would invest in America again. Putting our country first, for the first time in years, is working. This investment is proof. I'm proud to have helped deliver this major win for our community.' U.S. Rep. Debbie Dingell, D-Ann Arbor, also praised the decision. 'This is good news for Michigan's workers and our role as a leader in the global auto industry. In order to remain a leader, we must be producing a robust product line that consumers want, including electric vehicles,' she said in a statement. 'The global market wants EVs. This investment demonstrates the auto industry's commitment to this leadership, and U.S. policy must support it. I will continue to work with every stakeholder to invest in manufacturing here at home, bring back jobs from overseas, and support the workers and communities who have built their lives around the auto industry." GM CEO Mary Barra said in a statement: 'We believe the future of transportation will be driven by American innovation and manufacturing expertise. Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.' Other investments GM also is retooling its Fairfax Assembly plant in Kansas City and the Spring Hill Manufacturing plant in Tennessee. Fairfax Assembly will produce the gas-powered Chevrolet Equinox beginning in mid-2027, and will start producing the 2027 Chevrolet Bolt EV by the end of 2025. The Mexico-assembled Equinox is one of GM's top-selling vehicles and the No. 1 single nameplate that GM produces in Mexico for the U.S. market. GM exported 257,000 gas and electric Equinox vehicles from its Ramos plant across 2024, Abuelsamid said. GM said it plans to announce further investments to Fairfax for electric vehicles in the future. As for Spring Hill, in addition to bringing the Chevrolet Blazer production up from Mexico, the plant will also produce the Cadillac Lyriq and Vistiq EVs, as well as the Cadillac XT5. Once these changes come into play, Abuelsamid said, vehicle costs may rise. 'GM will probably increase prices once they increase U.S. production,' he said. 'That's why these vehicles were built in Mexico in the first place.' Free Press staff writer Todd Spangler contributed to this report. Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@
Yahoo
3 hours ago
- Yahoo
Australia's Element 25 secures $32.6 million in government debt to build out manganese mine
(Reuters) -Australian manganese producer Element 25 said on Tuesday the Northern Australia Infrastructure Facility (NAIF) has agreed to provide a senior debt facility of up to A$50 million ($32.57 million) for the firm's Western Australia project. Shares of the producer jumped as much as 10.3% to A$0.215 in early trade. The funding comes as manganese is set for growing demand from the electric vehicle industry. General Motors and battery partner LG Energy Solution said last month they are planning to start commercial production of lithium manganese-rich (LMR) battery chemistry at a U.S. facility starting in 2028. GM said the chemistry is lower cost than the nickel-rich cells used today, but will still give customers the range they want in future electric trucks and full-size SUVs. NAIF will provide the funding for the company's Butcherbird Manganese Expansion Project located in the Pilbara region, while Element 25 continues to explore additional funding through other sources including offtake prepayment. The facility will support the miner's plans to expand Butcherbird's production capacity to 1.1 million tonnes per annum of manganese oxide concentrate. This will further enable the project to supply manganese concentrate feedstock for Element 25's planned battery grade, high purity manganese sulphate monohydrate processing (HPMSM) facility, which it plans to build in Louisiana, in the United States. "Our feasibility studies have confirmed Butcherbird's pedigree as a long-life manganese concentrate production hub from its 274 million tonne resource, which is integral to our plans for HPMSM in the USA as well as potentially other locations around the world," said Element 25's managing director Justin Brown. Element 25 is also considering other geographies, including Tokyo, to build processing hubs for the critical mineral that is set for growing demand from the electric vehicle sector, Brown added. The firm said it is also in discussions with a number of potential financiers for the balance of the required project finance. ($1 = 1.5352 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
Tesla and the Other American Car That Are Way Cheaper Due To Trump's Tariffs
The Trump Administration's imposition of tariffs on vehicles and car parts made outside of the United States have turned the auto market on its head. Most economists seem to agree that the tariffs will increase costs for nearly all automakers and consumers will pay the price. Even cars with famously American nameplates, like Ford and GM, will likely see vehicle prices increase, perhaps by thousands of dollars per vehicle. But two automakers seem poised to benefit from the turmoil. Here's how the tariffs will affect the overall market and who the likely winners will be if they remain in place. Read Next: Trending Now: As reported by CNBC, several industry analysts see Tesla and Rivian as winning the tariffs war, at least as it comes to auto manufacturers. These two companies are among the few who produce 100% of their vehicles in the United States, making them obvious winners over foreign manufacturers like Honda and Toyota. However, Tesla and Rivian also have an edge over domestic manufacturers like Ford and GM. According to Daniel Roesak, an analyst for Bernstein, 'Tesla wins, Detroit bleeds.' Roeska thinks Tesla in particular is 'better insulated' from trade risk and the 'clear structural winner' of Trump's tariff policy. Check Out: UBS analyst Joseph Spak agrees with Roesak, saying both Tesla and competitor Rivian could 'fare better' since they both produce 100% of their vehicles in America. The stock market seemed to agree with Spak, as Rivian shares popped by 7% the day after Trump announced the 25% tariffs on auto makers. Since the goal of Trump's tariffs is to protect American businesses and allow them to compete on a level playing field, it would seem logical to think that the big legacy American auto makers, like GM and Ford, should benefit as well. Unfortunately, in today's multinational economy, hardly anything truly gets produced 100% domestically and that's definitely true in the case of Ford and GM. According to Bloomberg, for example, nearly half the vehicles GM sold in America in 2024 were built abroad. Ford is a bit more American-focused, but still assembles about 21% of its cars overseas, according to Ford Media. That means that even these most American of companies still rely heavily on overseas parts and production – thus subjecting them to some of the very tariffs designed to protect them. Spak sees the price of Ford and GM cars spiking by as much as $4,000 to $5,000 per vehicle if the companies pass through the cost of the tariffs. Ford would likely be shielded more than GM, as it has more domestic production, but in both cases, prices are expected to rise. For now, auto pricing is in a nebulous place. Dealers of all brands are making whatever defensive adjustments they can without fully committing to one direction or the other, as the tariffs may vanish as quickly as they were implemented. On April 29, for example, Trump already softened the most draconian aspects of the tariffs, according to Reuters and further reductions may — or may not — be on the horizon. Given the current environment, many analysts suggest that if you're already in the market for a new car, it might make sense to move sooner rather than later. Prices are unlikely to fall in the current environment and if the tariffs remain in place, they may very well jump higher. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on Tesla and the Other American Car That Are Way Cheaper Due To Trump's Tariffs Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
