Cruise Robotaxis Face Imminent Shutdown: The Future of Autonomous Transportation

Autonomous Driving Operations at Cruise Likely to End as GM Cuts Funding

General Motors (GM) has announced that it will no longer fund Cruise, its autonomous-driving subsidiary, following a challenging period for the company. This decision marks the end of autonomous-driving operations at Cruise, which has been owned by GM since 2016.

Challenging Times for Cruise

Cruise has faced several setbacks recently, including a fatal accident in San Francisco in October 2023, where one of its autonomous cars ran over a woman after she was knocked into its path by a human-driven car. This incident led to California regulators suspending Cruise’s license to test its driverless cars on the state’s streets, prompting the company to pause operations in other locations.

GM’s Decision to End Funding

GM has invested billions of dollars in Cruise, but the company has decided that it is no longer viable to continue funding the subsidiary. According to GM, the company will "no longer fund Cruise’s robotaxi development work given the considerable time and resources that would be needed to scale the business, along with an increasingly competitive robotaxi market."

Combining Cruise and GM Technical Teams

Instead, GM plans to combine Cruise and GM technical teams into a single unit that will focus on advancing autonomous and assisted driving. This move is designed to help GM deliver the best driving experiences to its customers in a disciplined and capital-efficient manner.

Cruise’s Future Uncertain

Cruise has yet to comment publicly on GM’s decision, but it is unclear what this means for the company’s autonomous testing in the immediate future. Cruise has driverless cars on roads in Texas and Arizona, but GM’s announcement could see Cruise pause operations with immediate effect.

The Challenges Facing the Robotaxi Industry

GM’s decision highlights the challenges facing the fledgling robotaxi industry, which currently comprises mostly pilot services. In a similar move, Ford pulled funding for autonomous-car specialist Argo in 2022. Alphabet-backed Waymo, which tests its robotaxis in multiple cities, is currently the leader in the field.

Will Cruise Find a New Backer?

While it is unclear what the future holds for Cruise, the company may be able to find a new backer to support its autonomous-driving operations. For now, however, the fate of Cruise’s driverless cars remains uncertain.