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General Motors has announced that it will cease funding the development of its Cruise self-driving taxi business, signaling a strategic shift. The company confirmed that it will now “refocus autonomous driving development on personal vehicles,” marking a significant departure from its previous robotaxi ambitions. GM cited the increasingly competitive robotaxi market as a key reason for the change.
In recent months, General Motors Shuts Down Robotaxi operations as rival companies, including Tesla, accelerate their robotaxi plans. In October, Tesla’s Elon Musk revealed the much-anticipated Cybercab, the company’s self-driving electric taxi, in Burbank, California. General Motors Shuts Down Robotaxi business partly due to the considerable time and resources required to scale operations in the face of such competition.
Cruise, the autonomous vehicle unit owned by GM, had previously faced setbacks, including halting all of its U.S. vehicle tests after California revoked its driverless testing permit. The company also dealt with the aftermath of an accident where one of its vehicles hit and dragged a pedestrian in October 2023, resulting in serious injuries. General Motors Shuts Down Robotaxi program after Cruise was also implicated in submitting false reports to federal authorities about the crash, leading to a criminal investigation and resolution last month.
The company has not disclosed how many Cruise employees may transition to other GM divisions. However, GM indicated that it owns 90% of Cruise, with plans to increase this stake to over 97% through agreements with other shareholders.
This decision marks a significant moment in the robotaxi industry’s evolution, where major players such as Tesla, Waymo, and Amazon continue to push forward despite challenges. General Motors Shuts Down Robotaxi project as the company looks to shift its focus back to personal vehicles, ending a chapter in its pursuit of autonomous taxi services.
