GM shifts gears by DROPPING robo-taxi strategy
- Perry Richardson
- Dec 12, 2024
- 1 min read
General Motors (GM) has announced a significant shift in its approach to autonomous driving technology, stepping away from funding its ambitious self-driving taxi service plans.
The company will instead integrate its Cruise autonomous vehicle business into its broader advanced driver assistance systems (ADAS) strategy.
The decision reflects GM’s assessment of the resources required to scale a robotaxi business in an increasingly competitive market. Chair and CEO, Mary Barra, stated: “GM is committed to delivering the best driving experiences to our customers in a disciplined and capital-efficient manner.”
Cruise, of which GM currently owns 90%, has been at the forefront of autonomy innovation. However, GM plans to consolidate Cruise operations with its existing ADAS teams. This move aligns with the company’s goal to streamline efforts and focus on advancing its Super Cruise system, which offers hands-free driving across over 20 GM models and logs more than 10 million miles monthly.
As part of this new strategy, GM intends to increase its stake in Cruise to over 97%, with plans to acquire the remaining shares. Pending approval, the restructuring will aim to sharpen Cruise’s focus and reduce GM’s annual expenditure by more than $1 billion. These savings are expected to materialise by mid-2025.
