GM shutters Cruise robotaxi project
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The fate of Cruise employees and operations will be determined by mid-2025. Photo: Jay R. Jordan/Axios
General Motors is shutting down its Cruise robotaxi project, citing intense competition for self-driving cars and the steep costs associated with developing them.
Why it matters: Houston was the largest of a handful of cities nationwide where Cruise was trying to reintroduce its autonomous rideshare service after a tumultuous launch in 2023.
Driving the news: The automaker announced Tuesday that it would no longer fund the Cruise robotaxi, instead aligning its vision "on a path to fully autonomous personal vehicles."
- The company noted "the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market."
- Major robotaxi competitors include Waymo and Tesla, neither of which has a presence in the Bayou City.
Catch up quick: Cruise has been operating autonomous test vehicles on Houston streets with safety drivers onboard since June.
- The company briefly offered rides to the public in 2023 before halting service amid probes into an incident in California, where an autonomous Cruise car dragged a woman who had been struck by a hit-and-run driver.
The intrigue: Before GM's announcement Tuesday, Cruise this month announced a six-month partnership with mobility solutions provider Numotion to help Houstonians in need of wheelchair repairs for free.
- The fate of that program remains up in the air along with the future of Cruise's 2,300 employees nationwide.
What they're saying: "It's too early to provide specifics," GM spokesperson Kevin Kelly told Axios, saying the company is still working to repurchase stock from Cruise shareholders.
- After that, the company "will work with the Cruise leadership team to restructure and refocus Cruise's operations," Kelly said. "We expect the restructuring to be complete in mid-2025."
Cruise CEO Marc Whitten said in a statement to Axios that the board of directors and his leadership team are "collaborating closely with GM on next steps."
The big picture: GM said it expects to save $1 billion annually in connection with the strategy change.
- The company said it will focus on development of Super Cruise, a partially autonomous system that enables "hands-off, eyes-on driving" and is now available on more than 20 GM models.
The impact: GM shares jumped over 3% in aftermarket trading Tuesday following the news.