After a series of accidents, the American self-driving car company Cruise, which became a subsidiary of General Motors, has suspended operations at the end of 2023. In May, it returned its vehicles to public roads, but now the company’s survival is in question, as GM has suspended financing.

Since taking over Cruise in 2016, GM has invested almost $10 billion in the company and now intends to reach agreements with shareholders and increase its stake from 90 to 97 percent. The company has also decided to end funding for robotaxis at a time when Waymo, backed by Alphabet, is expanding to more cities, and Tesla plans to start its robotaxis business in 2026.

General Motors’ primary goal is autonomous vehicles for personal use, and keeping the robotaxis project alive is financially unsustainable due to the enormous costs. In 2023, Cruise lost $3.48 billion, which could lead to large-scale layoffs.

“Given the time and cost required to scale up a robotaxi business in an increasingly competitive market, joining forces seems more efficient,” said Mary Barra, CEO of General Motors.

Source: Reuters; Photo: EPA-EFE