Home Auto Tech GM’s Cruise Prepares for a Limited Restart of Driverless Robotaxis

GM’s Cruise Prepares for a Limited Restart of Driverless Robotaxis

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GM’s Cruise Prepares for a Limited Restart of Driverless Robotaxis

General Motors’ self-driving car unit, Cruise, plans to relaunch operations in one city before expanding to others, following California’s recent decision to prohibit its autonomous vehicles from public roads after an accident. Cruise has temporarily halted all supervised and manual car trips in the United States and is conducting a safety review, resulting in the resignation of its CEO and chief product officer. The company aims to rebuild trust and improve its safety culture before expanding. Cruise will initially focus on the Bolt-based Cruise AVs and is also considering the long-term strategy for its multi-passenger vehicle, the Origin. The company plans to cut some jobs, primarily in non-engineering roles. GM’s finance chief, Paul Jacobson, is expected to discuss the financial impact during an upcoming analyst call. Cruise’s goal of generating $50 billion in revenue by 2030 has been challenged by its recent setbacks. The company has faced losses of over $8 billion since 2016 and now deals with higher labor costs, slower-than-expected electric vehicle sales, and new emissions standards. GM’s shares have declined 16% this year, while the broader S&P 500 index has risen nearly 19%. The relaunch city has not been disclosed, but it is unlikely to be San Francisco, where the accident occurred. Cruise operates in Phoenix and Austin, where regulators have been more receptive. The company had previously applied to deploy up to 2,500 self-driving vehicles annually without human controls but currently lacks government approval. Cruise will compensate employees for potential tax liabilities and has made a new tender offer to allow them to sell shares after suspending the program, facing criticism from employees regarding stock valuation. Morgan Stanley analysts will watch GM’s management closely to evaluate the impact of Cruise’s challenges on the company’s broader capital allocation.

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