General Motors (GM) will end funding for its Cruise robotaxi service, the company said today.
Cruise, a self-driving taxi subsidiary, was acquired by GM in 2016. It posted a US$435 million (A$681.9 million) loss in GM’s third-quarter earnings report.
“GM is committed to delivering the best driving experiences to our customers in a disciplined and capital efficient manner,” said GM CEO Mary Barra.
“Cruise has been an early innovator in autonomy, and the deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.”
Cruise’s self-driving car development will be folded back into GM. The company aims to develop vehicles that can autonomously steer, accelerate, and brake, Barra said on a conference call today.
GM owns 90% of Cruise, and has invested more than $10 billion into the company. Cruise lost $3.48 billion in 2023.
Barra said in 2023 that GM hoped Cruise would generate $50 billion in annual revenue by 2030.
Cruise’s self-driving taxi permits were suspended in California in October 2023 after a Cruise car struck a pedestrian, with the company halting its services nationwide the following month. Cruise had begun testing in recent months to prepare for a potential relaunch.
The company agreed to pay a $500,000 settlement last month for reportedly failing to disclose details of the crash to the National Highway Traffic Safety Administration.
Self-driving taxi company Waymo, owned by Alphabet, said last week it will expand into Miami. Tesla plans to launch a robotaxi service next year.
GM’s (NYSE: GM) share price closed at US$52.74, up slightly from the previous day’s $52.71. Its market cap is $58 billion.