On Tuesday, General Motors (GM) announced a strategic shift in its autonomous driving efforts, focusing on developing systems for personal vehicles rather than robotaxis. This decision comes as the company aims to enhance its advanced driver assistance systems (ADAS) and integrate its majority-owned subsidiary, Cruise LLC, with GM’s technical teams. The move also includes ceasing funding for Cruise’s robotaxi development, citing the time, resources, and competition required to scale that business. GM Chair and CEO Mary Barra stated that the company is committed to delivering the best driving experiences to its customers in a disciplined and capital-efficient manner. This decision comes as the robotaxi industry faces increased competition and regulatory hurdles, with Cruise facing significant setbacks, including a critical incident in October 2023. GM’s senior VP of software and services engineering, Dave Richardson, expressed the company’s commitment to autonomous driving and the benefits it can bring to customers. While Cruise CEO Marc Whitten and other leaders will remain to guide the transition, GM did not clarify the future of Cruise’s employees. The company currently owns 90% of Cruise and plans to increase its stake to over 97% and acquire the remaining shares, subject to Cruise board approval. The restructuring aims to cut annual spending by over $1 billion, with completion targeted for the first half of 2025. The news has sparked reactions from industry experts, with some, like George Hotz, president at comma.ai, expressing that they had predicted this development five years ago. Others, like former Cruise co-founder Kyle Vogt, have expressed disappointment in GM’s decision, citing the potential of Cruise’s fully autonomous shuttle, Origin. Ian Kar, General Partner at Vol. 1 Ventures, believes that Cruise was a huge opportunity for an incumbent to move the needle in the autonomous driving space.
