GM takes full control of Cruise in autonomous personal vehicle shift
GM takes full control of Cruise in autonomous personal vehicle shift
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GM gives up on loss-making Cruise robotaxi business
General Motors is giving up on its Cruise robotaxi business. The auto giant said Tuesday that it would end development at the loss-making unit, which had once been a top priority. GM said too much time and resources would be required to make Cruise a success.
General Motors GM.N said on Tuesday it had completed the full acquisition of its Cruise business to focus on developing the autonomous technology for personal vehicles not robotaxis.
The Detroit automaker said it plans to integrate the Cruise technology into its Super Cruise system, which allows drivers to operate the vehicle hands-off on 750,000 miles of roads in North America and is available on more than 20 GM vehicle models.
GM said in December it would halt funding of the Cruise robotaxi business. This followed a year of trying to overcome challenges that arose after one of its robotaxis struck and seriously injured a pedestrian who had been hit by another vehicle. GM had invested more than $10 billion in Cruise since 2016.
More General Motors news: GM proves that big moves are restructuring on the fly as uncertainty looms in 2025
The merger will result in the reduction of 50% of Cruise's staff, said a Cruise spokesperson, who declined to specify the total number of employees affected. A source familiar with the matter said nearly 1,000 employees were laid off as a result of the acquisition.
"We are focused on combining efforts with General Motors to accelerate autonomy at scale on personal autonomous vehicles," the spokesperson said in a statement.
The GM and Cruise teams will work on expanding Super Cruise to streets in urban environments, the company said.
Dave Richardson, senior vice president of software and services engineering, said that the move will "accelerate our work on both assisted-driving and autonomous driving."
During its fourth-quarter earnings call last month, GM executives pitched Super Cruise as one of its growth areas this year. CEO Mary Barra told investors the automaker is forecasting Super Cruise will bring in about $2 billion in total annual revenue within five years.
Reporting by Kalea Hall in Detroit, David Shepardson in Washington D.C.; Editing by Alexander Smith and Nick Zieminski
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