Connect with us

Mobility Report

**Cruise Control Lost: GM’s Robotaxi Ambitions Stalled in California, Eyes on Texas Revival**

Published

on

Status of GM's Cruise Robotaxi Unit

While California has halted driverless permits, Texas appears to be a potential new location.

Currently, a group of Cruise Origin robotaxis are parked and unused at Roush in Livonia, Michigan. General Motors announced that there are no plans to manufacture these robotaxis in 2024.

Kyle Vogt proudly announced last year that Cruise, General Motors' robotaxi division, was on track to achieve — or even exceed — its target of generating $1 billion in revenue by 2025.

The co-founder and former CEO mentioned that Cruise was in a phase of rapid expansion, indicating that they had moved beyond just demonstrating the effectiveness of their technology.

That's not the case

After a crash in October resulted in California revoking the company's operating permits, Cruise's vehicles have been halted. Vogt stepped down in November. This is the current situation of the company.

Relevant Story

General Motors acquired the autonomous vehicle company Cruise in 2016 with the goal of one day launching robotaxi services in San Francisco. By June 2022, Cruise made history by becoming the first to offer a commercial, driverless service in the city.

Cruise intended to launch its service in over twelve cities across the United States and in three different countries. Additionally, it partnered with Honda to initiate a robotaxi service in Japan.

On October 2nd, a self-driving taxi operated by Cruise hit a pedestrian in San Francisco. Initially, the pedestrian had been struck by a car driven by a human, which threw them into the path of the autonomous taxi. Footage from Cruise depicting the accidents suggested that the sequence of events concluded at that point and implied that the Cruise vehicle had limited ability to prevent the incident.

However, there was more to the story than that.

California authorities stated that the footage does not demonstrate the robotaxi halting over the pedestrian and subsequently resuming movement. The vehicle then dragged the individual for an additional 20 feet, resulting in "multiple traumatic injuries," as reported by the San Francisco Police Department.

Officials from the California Department of Motor Vehicles found out a few days later that the Cruise vehicle had kept moving after a federal agency had begun investigating the accident.

On October 24, 2023, authorities revoked the permits required by Cruise for testing and deploying driverless vehicles in California. The decision was based on safety concerns and the failure to report a secondary movement.

The authorizations are still on hold

Cruise has halted operations of its fleet across the country, which also encompassed limited services in the Phoenix metropolitan area and Austin, Texas.

The firm postponed the manufacturing of its specialized robotaxi, the Origin, announcing that no units will be produced in 2024.

In November, both Vogt and Cruise's co-founder Daniel Kan stepped down from their positions. Following an internal investigation, the company dismissed nine staff members, including high-ranking officials. By December, Cruise had reduced its workforce by around 24 percent, letting go of roughly 900 employees.

In February, workers at Cruise were informed that an external assessment had significantly reduced the company's worth by over 50%. The stock price dropped to $11.80, compared to $24.27 per share just three months prior. GM had previously hoped to achieve $50 billion in revenue from its autonomous vehicle unit, but it has incurred losses exceeding $8 billion since 2016.

Investigations by the Department of Justice and the Securities and Exchange Commission are still in progress.

General Motors and Cruise enlisted the services of Quinn Emanuel, a law firm, to investigate the company’s response to the crash. The investigation concluded that there was no proof suggesting that Cruise employees aimed to mislead regulators.

However, it admitted to an inadequate reaction towards regulatory authorities, stating that "Cruise's handling of the October 2 incident demonstrates poor leadership at the company's top levels."

In addition, Exponent Inc. carried out a technical investigation into the causes of the crash and discovered that the robotaxi's collision detection system mistakenly recognized the pedestrian as a side-impact collision instead of a frontal collision.

In November, Craig Glidden, an executive vice president at GM, was appointed co-president of Cruise, sharing the role with Mo Elshenawy, who is the senior vice president of engineering at Cruise.

In February, Cruise brought on Steve Kenner, a seasoned professional in the automotive industry, as its inaugural chief safety officer. Kenner has held prior safety leadership roles at companies such as GM, Kodiak Robotics, Ford, Apple, Uber, and Aurora Innovation.

General Motors CEO Mary Barra and President Mark Reuss have expressed their continued optimism about Cruise's long-term prospects. Currently, Cruise's test fleets in the United States are still not operating. Upon resuming operations, Cruise will focus on just one location. Dallas and Houston are leading contenders, but Cruise has not yet specified where it will relaunch.

Suggested for Readers

Detroit chosen as one of three international cities for a sustainability initiative

Contact us with your feedback

Do you have thoughts on this article? Submit a Letter to the Editor here, and it might be featured in our print edition.

Subscribe to our complimentary newsletters:

Daily Overview (weekdays)

Weekly Overview (Mondays)

Urgent News Updates (as necessary)

I agree to get emails about editorial content, exclusive deals, studies, events, and webinars from Automotive News.

EMAIL ADDRESS

Kindly provide a valid email address.

Kindly provide your email address.

Kindly complete the captcha verification

Kindly choose a minimum of one newsletter to which you would like

Explore additional newsletter choices at autonews.com/newsletters. You have the option to unsubscribe at any moment using the links provided in these emails. For further details, please review our Privacy Policy.

Digital Edition

MOBILITY REPORT NEWSLETTER: Subscribe to our Mobility Report newsletter, sent every Thursday afternoon, and stay updated on the latest advancements in transportation and technology.

Subscribe now to receive top stories from Automotive News directly in your email inbox, at no cost. Select your preferred news, and we will ensure it's delivered to you.

Gain round-the-clock access to comprehensive and reliable reporting on the automotive sector, brought to you by an international team of journalists and editors focusing on the essential news for your business.

Our purpose

To equip today's and tomorrow's business leaders with the understanding, information, and networks necessary to succeed in a swiftly evolving sector.

1155 Gratiot Ave, Detroit, MI 48207-2997

You can reach us at 877-812-1584

Send us an

Automotive News Print ISSN: 0005-1551 | Online ISSN: 1557-7686


Discover more from Automobilnews News - The first AI News Portal world wide

Subscribe to get the latest posts sent to your email.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE FOR FREE

Advertisement
Cars & Concepts17 mins ago

GM’s Electric Vehicle Setbacks: Delays for Electric Truck Plant and Buick EV Unveiling

Moto GP2 hours ago

Trackhouse Racing Secures Raul Fernandez for 2025 MotoGP Season with New Two-Year Deal

Automakers & Suppliers2 hours ago

Driving the Future: Unveiling Ferrari’s Top Innovations in Supercar Technology

Automakers & Suppliers2 hours ago

Unveiling Ferrari’s Latest Innovations: Exploring Cutting-Edge Technology and Design in the Iconic Italian Supercar

Moto GP3 hours ago

Marc Marquez Opens Up About Feasible Switch to KTM or Aprilia and Future MotoGP Aspirations Amid Ducati Shift

Automakers & Suppliers4 hours ago

## Lamborghini’s AI Reporter: Unveiling the Future of Italian Luxury Vehicles and High-Performance Automobiles

Automakers & Suppliers4 hours ago

Top BMW Innovations: Unveiling Cutting-Edge Technology and AI Advancements in the Latest BMW News and Models

Automakers & Suppliers4 hours ago

Top Audi News: Exploring Audi’s Latest Innovations and AI-Driven Sustainability Efforts

Politics9 hours ago

Global Shakeup: Starmer Responds to Biden’s Exit from Presidential Race Amidst UK Political Maneuvering

Politics9 hours ago

Mel Stride Eyes Conservative Leadership Bid Amid Uncertain Campaign Timetable

Politics10 hours ago

Labour Urged to Confront ‘Net Zero Nimbys’ to Promote Green Energy and Reduce Utility Bills

Politics10 hours ago

Parliament Elects New Leadership: Committee Chairs and Vice-Chairs Set for Two-and-a-Half-Year Term

Politics10 hours ago

From Crime Journalist to Leadership Contender: Russell Findlay Announces Bid for Scottish Conservative Leadership

Politics11 hours ago

Parliament Elects New Leadership: Comprehensive Breakdown of Committee Chairs and Vice-Chairs

Politics11 hours ago

Revealed: Scrapped Rwanda Scheme Cost £700m Without Migrant Transfers, Tories Planned £10bn Spend

Politics11 hours ago

Funding Crisis Looms: Higher Education Minister Warns of Potential University Closures

Sports12 hours ago

ABT Sportsline: The Pinnacle of Performance Tuning and Customization for Audi, VW, and Beyond

Politics12 hours ago

Race to Replace Sunak: Conservative Leadership Battle Set for November Amid Calls for Respectful Debate

Moto GP2 months ago

Enea Bastianini’s Bold Stand Against MotoGP Penalties Sparks Debate: A Dive into the Controversial Catalan GP Decision

Moto GP2 months ago

Aleix Espargaro’s Valiant Battle in Catalunya: A Lion’s Heart Against Marc Marquez’s Precision

Sports2 months ago

Leclerc Conquers Monaco: Home Victory Breaks Personal Curse and Delivers Emotional Triumph

Moto GP2 months ago

Raul Fernandez Grapples with Rear Tyre Woes Despite Strong Performance at Catalunya MotoGP

Sports2 months ago

Verstappen Identifies Sole Positive Amidst Red Bull’s Monaco Struggles: A Weekend to Reflect and Improve

Moto GP2 months ago

Joan Mir’s Tough Ride in Catalunya: Honda’s New Engine Configuration Fails to Impress

Sports2 months ago

Leclerc’s Monaco Triumph Cuts Verstappen’s Lead: F1 Championship Standings Shakeup After 2024 Monaco GP

Sports2 months ago

Leclerc Triumphs at Home: 2024 Monaco Grand Prix Round 8 Victory and Highlights

Sports2 months ago

Perez Shaken and Surprised: Calls for Penalty After Dramatic Monaco Crash with Magnussen

Sports2 months ago

Gasly Condemns Ocon’s Aggressive Move in Monaco Clash: Team Harmony and Future Strategies at Stake

Business2 months ago

Driving Success: Mastering the Fast Lane of Vehicle Manufacturing, Automotive Sales, and Aftermarket Services

Business2 months ago

Shifting Gears for Success: Exploring the Future of the Automobile Industry through Vehicle Manufacturing, Sales, and Advanced Technologies

Business2 months ago

Driving Success in the Fast Lane: Mastering Market Trends, Technological Innovations, and Strategic Excellence in the Automobile Industry

Tech2 months ago

Driving the Future: Exploring Top Innovations in Automotive Technology for Enhanced Safety, Efficiency, and Connectivity

AI2 months ago

Revolutionizing the Future: How Leading AI Innovations Like DaVinci-AI.de and AI-AllCreator.com Are Redefining Industries

Business2 months ago

Hong Kong’s Ambitious Leap: The City’s Strategic Roadmap to Becoming a Global Innovation and Tech Hub

Business2 months ago

Driving Success: Mastering the Automobile Industry with Key Insights on Vehicle Manufacturing, Automotive Sales, and Beyond

Tech2 months ago

Revving Up the Future: Top Automotive Technology Trends Driving Sustainability, Safety, and the Electric Revolution

V12 AI REVOLUTION COMMING SOON !

Get ready for a groundbreaking shift in the world of artificial intelligence as the V12 AI Revolution is on the horizon

SPORT NEWS

Business NEWS

Advertisement

POLITCS NEWS

Chatten Sie mit uns

Hallo! Wie kann ich Ihnen helfen?

Discover more from Automobilnews News - The first AI News Portal world wide

Subscribe now to keep reading and get access to the full archive.

Continue reading

×