General Motors (GM) has recently announced a significant shift in its strategy concerning autonomous vehicle (AV) development, particularly regarding its driverless taxi subsidiary, Cruise. On 10 December 2024, GM revealed that it will discontinue funding for the robotaxi initiatives at Cruise, pivoting instead towards enhancing partially automated driving systems, particularly its existing SuperCruise technology.

Founded in 2016 after GM acquired the Silicon Valley start-up, Cruise Automation, the aim was to remain competitive in the burgeoning AV sector, where various tech giants such as Alphabet, Apple, and Uber were vying for dominance. At the genesis of this endeavour, GM envisioned Cruise as a pivotal player in the rollout of a profitable fleet of robotaxis. Under GM, Cruise operated as an independent entity within the company’s Autonomous Vehicle Development Team.

The decision to cut funding was conveyed in a statement wherein GM articulated its intent to realign its autonomous driving strategy by focusing on the development of advanced driver assistance systems (ADAS) rather than fully autonomous taxi services. In conjunction with this pivot, GM indicated plans to leverage the advancements made through SuperCruise, a hands-off, eyes-on driving feature currently available in over 20 GM vehicle models, recording more than 10 million miles driven per month.

Mary Barra, chair and CEO of GM, stated, “GM is committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner.” She underscored the role of Cruise as an “early innovator in autonomy,” while expressing optimism that the integration of GM’s resources and Cruise’s technical expertise would further propel the vision for future transportation solutions.

Adding to this sentiment, Dave Richardson, senior vice president of software and services engineering, remarked, “As the largest U.S. automotive manufacturer, we’re fully committed to autonomous driving and excited to bring GM customers its benefits – things like enhanced safety, improved traffic flow, increased accessibility, and reduced driver stress.”

Moving forward, GM, which currently owns about 90% of Cruise, has plans to increase this stake to over 97% through agreements with other shareholders and aims to reacquire all outstanding shares. Following the successful purchase of these shares and pending board approval from Cruise, the company is set to collaborate closely with the Cruise leadership team to restructure and refocus its operations effectively.

This strategic divergence reflects the broader industry trends where companies are increasingly recognising the challenges and complexities associated with scaling fully autonomous vehicle services in a competitive market, thus turning attention towards alternatives that can enhance driving experiences in a more immediate timeframe.

Source: Noah Wire Services