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GM to cut spending by $1 billion on robotaxi unit Cruise in 2024

Economic Times

Economic Times · 1y ago

GM to cut spending by $1 billion on robotaxi unit Cruise in 2024

General Motors (GM) is planning to reduce spending by around $1 billion on its self-driving unit, Cruise, in 2024. This comes after Cruise faced investigations by the U.S. Justice Department and the Securities and Exchange Commission following a pedestrian accident involving one of its robotaxis. Despite the setbacks, GM CEO Mary Barra affirmed the company's commitment to Cruise and announced plans to "refocus and relaunch" the project. Cruise had incurred large losses, burning through $1.9 billion in cash during 2023. GM intends to prioritize retaining software and engineering talent, while temporarily halting the expansion of Cruise's operations.

Related News

GM reduces spending on Robotaxi unit cruise, in setback for driverless cars

Wired · 1y ago

GM reduces spending on Robotaxi unit cruise, in setback for driverless cars

General Motors (GM) plans to reduce spending in its self-driving car unit Cruise after a recent accident involving a pedestrian. The incident led to the retraction of Cruise's operating permit for driverless cars in San Francisco. GM's CEO, Mary Barra, stated that the company aims to be more cautious in the expansion of Cruise after operations resume. The focus will now be on safety, transparency, and accountability to regain trust with regulators and the communities where Cruise operates. Cruise has already recalled all of its driverless vehicles and suspended services in Austin and Phoenix.

Massive layoffs hit troubled Robotaxi developer Cruise

Wired · 1y ago

Massive layoffs hit troubled Robotaxi developer Cruise

General Motors' self-driving development subsidiary, Cruise, announced that it will lay off about 900 employees, almost a quarter of its workforce. The layoffs are part of a restructuring plan to narrow the focus of its robotaxi unit on commercialization. Instead of expanding its commercial robotaxi service to multiple US cities, Cruise will relaunch its paused service in just one city. This comes after a series of setbacks, including a crash and suspension of operations by California regulators. General Motors has spent billions on Cruise since 2017.

How GM's Cruise robotaxi tech failures led it to drag pedestrian 20 feet

Reuters · 1y ago

How GM's Cruise robotaxi tech failures led it to drag pedestrian 20 feet

A technical analysis commissioned by General Motors (GM) revealed that a self-driving Cruise robotaxi that struck and dragged a pedestrian in October suffered from several technical errors that worsened the situation after the collision. The errors include failing to detect the woman's location, inaccurate detection of the impact, and an error in determining the car's own location. The report emphasized that a human driver would have reacted differently after the incident and Cruise has since updated its software to address the issues. The incident has prompted investigations by multiple entities, including the Justice Department.

GM robotaxi unit Cruise offers $75,000 to resolve crash probe

Economic Times

Economic Times · 1y ago

GM robotaxi unit Cruise offers $75,000 to resolve crash probe

General Motors' Cruise robotaxi unit has offered to pay $75,000 to resolve an investigation into its failure to disclose details of a pedestrian crash involving a self-driving car. The California Public Utilities Commission had ordered Cruise to appear at a hearing on February 6 for misleading the commission and making false public comments. Cruise, which has fired several executives over the incident, has also requested the hearing be deferred and sought alternative dispute resolution. The investigation is expected to be completed before February 6.

GM's Cruise to resume robotaxi tests on city roads in coming weeks, Bloomberg reports

Reuters · 1y ago

GM's Cruise to resume robotaxi tests on city roads in coming weeks, Bloomberg reports

General Motors' self-driving car unit, Cruise, is planning to resume testing its robotaxis on public roads with safety drivers in Houston and Dallas after suspending operations in October. The company aims to rebuild trust with regulators and the public before relaunching its service. Cruise is currently meeting with officials in select markets to gather information and provide updates. The move comes as labor unions and lawmakers call for stricter regulation of autonomous vehicles following recent accidents involving self-driving taxis. The US Justice Department and Securities and Exchange Commission are also investigating a specific accident involving Cruise's robotaxi in October.

GM's Cruise robotaxis are back in Phoenix — but people are driving them

TechCrunch · 1y ago

GM's Cruise robotaxis are back in Phoenix — but people are driving them

General Motors' Cruise autonomous vehicle subsidiary is relaunching robotaxi operations in Phoenix, Arizona after a five-month pause. The vehicles will operate in manual mode as Cruise continues to refine its mapping and road information gathering processes. The move comes after a period of controversy for Cruise, including a high-profile incident involving a pedestrian in San Francisco and ongoing technical malfunctions. Cruise's new strategy appears to focus on a more cautious and supervised approach to autonomous driving, with an emphasis on safety and transparent incident response.

Kyle Vogt, CEO of Robotaxi Developer Cruise, Resigns As Questions Linger Over Grisly Crash

Wired · 1y ago

Kyle Vogt, CEO of Robotaxi Developer Cruise, Resigns As Questions Linger Over Grisly Crash

Kyle Vogt, the CEO of Cruise, a self-driving car developer, has resigned following the suspension of its robotaxi service permit by state regulators. The suspension came after a pedestrian was struck and dragged by one of Cruise's driverless vehicles. Vogt's departure comes as the company faces criticism for its aggressive approach to self-driving technology. Cruise's vice president of engineering, Mo Elshenawy, will take over as president and CTO, while GM's executive vice president of legal and policy, Craig Glidden, will serve as president of the unit.

Tesla reports profit drop on price cuts, lower vehicle sales

Economic Times

Economic Times · 1y ago

Tesla reports profit drop on price cuts, lower vehicle sales

Tesla reported a 45% drop in profits for the second quarter due to price cuts and increased spending on autonomous driving technology. The company earned $1.5 billion in profits on revenues of $25.5 billion. Tesla's earnings per share missed analyst expectations, but revenues exceeded them. The company also incurred one-time expenses of $622 million in the quarter. Despite the challenges, Tesla plans to introduce more affordable models in the first half of 2025. Tesla's Cybertruck vehicle is on track for profitability by the end of 2024. The company is committed to advancing autonomous driving technology but recently postponed a robotaxi event until October. Tesla shares fell 7.8% in after-hours trading.

Cruise's robotaxis require remote human assistance every 4 to 5 miles

Gizmodo

Gizmodo · 1y ago

Cruise's robotaxis require remote human assistance every 4 to 5 miles

Robotaxi company Cruise, once aspiring to lead the autonomous driving industry, is facing more troubles. It has been revealed that their "self-driving" cars are frequently aided by remote human assistants, happening around 2-4% of the time on average in complex urban environments. Cruise CEO, Kyle Vogt, confirmed these details, stating that human review is useful in certain situations. While the company's transparency is commendable, questions about the remote operations center and the level of control remote assistants have over the vehicles remain unanswered. This highlights that AI still requires human intervention.

General Motors to invest $4 billion to ramp up US production

Economic Times

Economic Times · 1m ago

General Motors to invest $4 billion to ramp up US production

General Motors has announced a $4 billion investment to increase U.S. production, transitioning some manufacturing from Mexico due to tariff concerns. This move will see the production of Chevrolet Blazer and Equinox, previously made in Mexico, shift to American plants in 2027. GM aims to assemble over 2 million vehicles annually in the U.S., supporting local jobs. Despite the investment, GM anticipates tariff-related impacts on profits. Shares rose nearly 1% following the announcement.

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