By Julian Castillo
Dec 15, 2024, 18:51 PM EST
General Motors (GM) has decided to withdraw its financial support for Cruiseits autonomous taxi subsidiary, marking a significant strategic shift towards autonomous vehicles focused on individuals. This measure comes in a context where the operation of Cruise’s autonomous vehicles has faced increasing challenges, including regulatory suspensions and safety concerns.
Change of focus: from taxis to private cars
GM’s recent announcement reflects its intention to prioritize the development of autonomous technologies for individual vehicles instead of shared services such as autonomous taxis.
Mary Barra, CEO of GM, noted that this transition seeks to better align resources with the company’s long-term objectives, particularly in a market where autonomous driving has had slower adoption than expected. The decision includes a significant reduction in funding to Cruise, calling into question the viability of its autonomous taxi model, which operated in cities such as San Francisco, Phoenix and Austin.
Regulatory and safety issues
Cruise has faced a series of problems that have complicated its operations. One of the most notable incidents occurred in San Francisco, where an autonomous taxi ran over a pedestrian after a previous accident with another vehicle.
This fact led Californian authorities to temporarily suspend Cruise’s permits to operate driverless vehicles, citing public safety concerns.
Although The company implemented corrective measures and internal reviews, such as hiring external security experts, these actions were not enough to reverse negative perceptions about their operations.
Besides, the autonomous taxi market has proven more challenging than anticipatedwith regulatory limitations and high operating costs that have affected the scalability of the model. According to experts, the focus on autonomous vehicles for individuals could allow GM to concentrate its resources on a segment with greater potential for commercial adoption.
With this change, GM is committed to an approach that seeks to regain confidence in autonomous technologiespositioning itself as a leader in this field, but with a strategy more focused on the individual consumer. Cruise’s autonomous taxis are likely to disappear from the urban landscape in the coming months, leaving room for new proposals and technologies in the autonomous mobility sector.
Keep reading:
– Cruise Origin: autonomous vehicle that travels through the streets of San Francisco
– California authorizes first fleet of driverless taxis in the country
– Cruise Origin: the taxi of the future