New Beginning after Setbacks: G.M.'s Cruise Returns with Safety Drivers

General Motors has resumed operations of its self-driving Cruise taxis in the cities of Dallas, Houston, and Phoenix. Following an accident last year in which a Cruise vehicle struck and dragged a pedestrian in San Francisco, all activities were temporarily halted. Now, human safety drivers are monitoring the self-driving cars and intervening when necessary. The California Department of Motor Vehicles had revoked Cruise's operating license after the accident. As a result, about a quarter of the staff were laid off and the management was replaced. Paul Jacobson, GM's Chief Financial Officer, has since confirmed that Cruise is once again offering autonomous ride services in the mentioned cities. Self-driving versions of the Chevrolet Bolt are being used. However, the production of the specially developed driverless vehicle, Cruise Origin, has been suspended indefinitely. Jacobson views the decision to use the Bolt as advantageous both from a regulatory perspective and in terms of cost. In the future, a transition to a modified version of the new Bolt is planned, which is set to go into production next year and will be more cost-effective than the Origin. The resumption of Cruise's tests was announced in GM's latest quarterly report, which delivered solid results. During the period from April to June, the automaker recorded a profit of $2.9 billion, an increase from $2.6 billion in the same period last year. Revenue rose to $48 billion from $44.7 billion previously. The annual forecast was also raised. Cruise itself made progress with a loss of $500 million before interest and taxes, compared to a loss of $600 million in the same period the previous year. Since acquiring Cruise in 2016, GM has invested billions in autonomous driving technology. Despite these advances, many analysts doubt that a significant market breakthrough is achievable in the near future. Competition from companies such as Waymo, Zoox, and possibly Tesla is intense. The fatal accident occurred when a pedestrian in San Francisco was struck by another vehicle and thrown in front of a driverless Cruise taxi, which dragged her an additional 20 feet. At the time, Cruise was preparing for rapid expansion and was testing vehicles in several U.S. cities, including Phoenix, Dallas, and Houston. As a result of the accident and poor communication with California authorities, GM laid off about 900 Cruise employees. Recently, Marc Whitten was appointed as the new CEO of Cruise. Whitten, who previously worked with Microsoft's Xbox division and Amazon, took on the role a week ago.