General Motors (GM) has announced plans to shift its focus in autonomous vehicle development, emphasizing advanced driver assistance systems (ADAS) over robotaxi services. This decision aligns with GM’s strategic goal of pursuing fully autonomous personal vehicles while maintaining a disciplined approach to capital allocation.
The company will integrate the technical teams of its majority-owned subsidiary, Cruise LLC, with GM’s in-house teams to streamline efforts in autonomous and assisted driving technologies. GM, which currently owns approximately 90% of Cruise, has agreements in place to increase its ownership to over 97% and plans to acquire the remaining shares. The restructuring and operational refocus of Cruise are contingent upon board approval and shareholder agreements.
GM has decided to discontinue funding Cruise’s robotaxi development due to the significant time and resources required to scale such a business. Additionally, GM cited increased competition in the robotaxi market as a factor in its decision to redirect its priorities. The new strategy will leverage the success of Super Cruise, GM’s hands-off, eyes-on ADAS feature, which is available on more than 20 vehicle models and records over 10 million miles of usage each month.
Mary Barra, GM’s chair and CEO, emphasized the importance of providing advanced driving experiences in a capital-efficient manner. She noted that the integration of Cruise’s innovations with GM’s manufacturing capabilities and strong brand portfolio would support the company’s vision for the future of transportation.
Dave Richardson, GM’s senior vice president of software and services engineering, highlighted the benefits GM aims to deliver through autonomous and assisted driving technologies, including enhanced safety, improved traffic flow, increased accessibility, and reduced driver stress.
The proposed restructuring of Cruise is expected to reduce GM’s spending by over $1 billion annually once fully implemented, a process anticipated to be completed in the first half of 2025.
