Cruise, General Motors' ambitious venture into the world of fully self-driving cars, is shutting down after a staggering investment of $7.6 billion.
The closure follows a series of scandals and GM's assessment that the robotaxi business is not financially sustainable.
What began as a bold step into the future of autonomous vehicles has now taken an unexpected turn. GM, which poured billions into Cruise, has decided to pivot away from the robotaxi market.
“The capital required to implement, maintain, and scale a robotaxi business is immense,” GM CEO Mary Barra told Reuters. “This type of operation is not aligned with General Motors' core business.”
Instead, GM is redirecting its focus toward self-driving technology for privately owned vehicles, a segment Barra believes holds far more promise for profitability.
“We know people love driving their own cars, but not in every situation,” Barra explained. “The opportunity to bring self-driving benefits to our customers for everyday use is incredibly exciting and fits squarely within our core mission.”
Although Cruise is shutting down, GM doesn’t view the $7.6 billion investment as a failure. The company plans to integrate much of the developed technology into future projects, ensuring that the lessons and innovations from Cruise will not go to waste.
This move sets GM apart from Tesla, which continues to double down on self-driving technology and its plans for a robotaxi future. Tesla recently unveiled its Cybercab, generating buzz and boosting its stock value. Many expect self-driving cars to revolutionize transportation in the United States, but GM’s decision underscores the differing strategies within the industry.
By closing Cruise, GM signals that the path to autonomy might not lie in robotaxis but in integrating self-driving capabilities into personal vehicles—showcasing a more pragmatic, customer-focused approach to a rapidly evolving market.
