General Motors has announced its exit from the robotaxi business, halting further funding for its Cruise division. The decision comes after accumulating nearly $10 billion in losses, marking one of the most expensive retreats from self-driving technology to date.
GM’s CEO Mary Barra addressed investors during a live call, acknowledging the harsh realities of operating a robotaxi fleet. “While Cruise was progressing toward a robotaxi business, the operational costs of deploying and maintaining a fleet simply don’t align with our core business model,” Barra stated. The automotive giant is now redirecting its focus toward developing advanced driver assistance systems for personal vehicles.
The autonomous driving landscape has become increasingly crowded, with competitors like Tesla pursuing different technological approaches. Tesla CEO Elon Musk weighed in on GM’s decision, highlighting the complexity of achieving true autonomy without significantly inflating vehicle costs.
GM’s announcement reveals a significant pivot in their autonomous driving approach. The company now plans to adopt an end-to-end model, similar to Tesla’s strategy, moving away from the dedicated robotaxi development that characterized Cruise’s efforts.
The decision has sparked intense reactions within the tech community. Kyle Vogt, Cruise’s co-founder and former CEO, expressed his disappointment publicly, criticizing GM’s leadership in unusually direct terms. Says: “In case it was unclear before, it is clear now: GM are a bunch of dummies.”
The $10 billion write-off represents more than just monetary losses – it’s a stark reminder of the challenges facing companies pursuing autonomous driving technology. GM’s stock price fluctuated as investors processed the implications of this strategic shift.
Despite this setback, GM isn’t abandoning autonomous technology entirely. The company’s renewed focus on personal vehicles suggests a more measured approach to self-driving capabilities, prioritizing practical applications over ambitious robotaxi services.
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