Cruise, a unit of , will exit the robotaxi business, in a retreat in a market that has proven expensive and full of traps for the automaker.
Cruise and GM’s technical teams will be combined into a single effort focused on developing autonomous technology to offer in future models sold by GM, according to a statement released Tuesday.
GM said it will no longer fund robotaxi development “given the considerable amount of time and resources required to scale the business, coupled with an increasingly competitive robotaxi market.”
This is a major setback for GM and Cruise, which survived a restructuring among autonomous driving companies and restarted operations after one of their cars was pedestrianized last year.
The decision has significant implications for GM. CEO Mary Barra wanted to transform the automaker into a transportation technology company and double GM’s revenue by 2030, in part by generating US$50 billion (R$302 billion) from Cruise. Without a robotaxi business to bring in revenue, that goal seems distant.
GM is pulling back just as Alphabet’s (GOOGL) Waymo expands into more cities and Tesla ( ) plans to launch its robotaxi business in 2026. Tesla’s CEO, , is now one of the most influential voices in technology circles. president-elect and has been pushing for a federal framework for self-driving cars.
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Ending the robotaxi push brings GM closer to its core business. The company will develop the technology to enhance its core business of vehicle manufacturing, abandoning dreams of mobility as a service.
Cruise had resumed operating cars with safety drivers in Dallas and Houston and planned to test vehicles in California.
GM shares were up 1.5% at 4:06 p.m. after the regular market close in New York.
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