DETROIT – General Motors (GM) announced on Tuesday its decision to cease funding for its Cruise robotaxi service, marking a strategic shift toward developing advanced driver-assistance systems (ADAS) aimed at fully autonomous personal vehicles.
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Strategic Pivot
The automaker attributed its decision to the “considerable time and resources” required to scale the robotaxi business and the increasingly competitive market in the sector.
“Cruise has been an early innovator in autonomy,” said GM CEO Mary Barra in a statement. “The deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.”
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History of Cruise LLC
Founded in 2013, Cruise LLC began testing self-driving vehicles in California in 2015. GM acquired the company in 2016, subsequently investing billions into its development and partnering with Honda to advance autonomous technologies.
In 2021, the California Department of Motor Vehicles (DMV) issued Cruise a permit to operate driverless taxis, which quickly became a fixture in San Francisco. The service later expanded to Arizona and Texas in 2022.
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Regulatory Challenges
Cruise faced setbacks in October 2023 when the California DMV suspended its operating permit, citing safety concerns following pedestrian injuries involving the autonomous vehicles. Additionally, the National Highway Traffic Safety Administration (NHTSA) launched an investigation into the incidents.
Looking Ahead
Despite discontinuing the robotaxi program, GM remains committed to autonomous driving technologies. Dave Richardson, GM’s senior vice president of software and services engineering, emphasized the company’s dedication to improving the driving experience, noting the potential benefits of autonomous vehicles, including enhanced safety, improved traffic flow, increased accessibility, and reduced driver stress.
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GM’s decision reflects its long-term goal of integrating autonomous systems into personal vehicles, aiming to redefine the future of transportation.
