General Motors withdraws from robotaxi business: Strategy shift to save billions

General Motors ends its robotaxi project after billion-dollar losses and will focus on autonomous driving in private vehicles in the future.

12/13/2024, 3:08 PM
Eulerpool News Dec 13, 2024, 3:08 PM

The US automaker General Motors (GM) is ending its ambitious robotaxi project, which was to be implemented through the subsidiary Cruise. Instead, the company wants to focus on the development of assistance systems that could enable autonomous driving in private vehicles. The strategic shift is expected to save around one billion US dollars annually, the company announced.

Cruise, once seen as the key to the future of autonomous driving, has cost GM around ten billion US dollars. The company had already tested robotaxis without steering wheels and pedals and planned for international expansion. But a serious accident in the fall of 2023 in San Francisco shook the project. A woman was thrown under a driverless Cruise vehicle after a collision and dragged several meters. The software did not recognize the situation and maneuvered the vehicle to the side of the road.

The incident led to Cruise losing its operating license for San Francisco and its vehicles being grounded. Despite a change in leadership and the resumption of test drives, GM has now decided to exit the robotaxi market.

The decision is made in an increasingly competitive market.

Additionally, Tesla intensifies the competition: CEO Elon Musk announced the production of an affordable robotaxi without steering wheel and pedals from 2026. The so-called "Cybercab" is supposed to rely solely on camera technology, which could offer a significant cost advantage over the laser-based systems of Waymo and Zoox. However, whether this is sufficient for safe autonomous driving remains disputed among experts.

GM joins a list of prominent companies scaling back their ambitions in autonomous driving.

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