General Motors (GM) has decided to shut down its Cruise robotaxi project. This move comes as the self-driving taxi market grows increasingly competitive.
This announcement follows Tesla's introduction of its innovative, steering-wheel-and-pedal-free Robotaxi, priced at an estimated $30,000, which ramps up market rivalry.
Instead of further investing in Cruise's development, GM will redirect its resources toward refining its 'Super Cruise' autonomous technology for personal vehicles.
> "In line with GM’s financial priorities, we’ll cease funding for Cruise's robotaxi to better allocate time and resources," said GM.
GM plans to increase its ownership of Cruise from 90% to 97% to facilitate an operational overhaul, aiming to save over $1 billion annually. This could happen as early as 2025.
Dave Richardson, VP of Software Engineering, emphasized GM's dedication to autonomous advancements, citing benefits like enhanced safety and reduced stress for drivers.
Summary: GM has decided to discontinue its robotaxi venture with Cruise due to stiff competition, focusing instead on enhancing its 'Super Cruise' technology. By restructuring Cruise, GM aims to significantly cut costs while pursuing innovations in autonomous driving.
