By ZeroHedge – Dec 13, 2024, 2: 00 PM CST
- GM is winding down its Cruise robotaxi division and merging its technical teams to focus on autonomous technology for future GM vehicles.
- The decision comes after Cruise faced regulatory scrutiny, safety concerns, and high operational costs.
- GM’s exit leaves Waymo and Tesla as the dominant players in the robotaxi market.
General Motors is winding down its Cruise robotaxi division, according to a new report from Bloomberg.
GM’s exit from the market leaves Google’s Waymo and Tesla as the two main names in autonomous driving. The division “proved costly and full of reputational pitfalls” for General Motors, the report said.
GM and Cruise will merge technical teams to focus on autonomous tech for future GM vehicles, halting robotaxi development due to high costs and stiff competition, the company announced Tuesday.
This marks a significant shift after Cruise weathered industry challenges and resumed operations following a high-profile incident last year.
The Bloomberg report said that GM’s retreat from the robotaxi business reshapes its ambitions. CEO Mary Barra’s vision of transforming GM into a tech-driven company with $50 billion from Cruise now seems distant. The move aligns GM with its core car-making focus, abandoning mobility-as-a-service goals.
This shift comes as Waymo expands and Tesla targets a 2026 robotaxi launch. Cruise had resumed operations with safety drivers in Dallas and Houston and planned California testing before the pivot.
The DOJ and SEC were among multiple agencies probing GM Cruise after a collision with a pedestrian last October.
Following the incident, California revoked Cruise’s permits, citing the company’s lack of transparency. A review by law firm Quinn Emanuel cleared Cruise executives of intentional deception but criticized their leadership and confrontational attitude towards regula