GM to exit robotaxi business after a series of unfortunate events and bleak outlook
General Motors announced its decision to stop funding its ailing Cruise autonomous business, as the automaker plans to focus on partially automated driver-assist systems instead
GM said that the significant time and resources needed to scale the business and an increasingly competitive robotaxi market made them take the decision
In 2016, GM bought Cruise for around USD 1 billion with plans to develop it into a full-fledged robotaxi fleet. In the years that followed, GM poured in billions of dollars in Cruise and eventually bought 90 per cent stake from investors.
But development came to a halt in 2023 when an autonomous Chevrolet Bolt allegedly dragged a pedestrian who was hit by another vehicle in San Francisco.
The California Public Utilities Commission accused Cruise of allegedly covering up the crash details for over two weeks
The fallout soon snowballed to the suspension of Cruise's license to operate driverless fleet in California and subsequent layoffs, and now the GM exit | Photos: AP & Cruise official site