GM's Cruise robotaxi exit a result of 'serious problems' from scaling too fast and continued high costs

Business and Finance Business and Finance

Wed, December 11, 2024

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GM's Cruise robotaxi exit a result of 'serious pr .. s' from scaling too fast and continued high costs

GM's Cruise robotaxi exit a result of 'serious problems' from scaling too fast and continued high costs

^{Published on 2024-12-11 11:00:51 - AOL}

General Motors pulled the plug on its Cruise robotaxi business on Tuesday night, a move marking a dramatic step back in its autonomous ambitions that began eight years ago.

General Motors' autonomous vehicle subsidiary, Cruise, has decided to exit its robotaxi operations in several cities including Phoenix, San Francisco, and Austin, following a series of safety concerns and regulatory scrutiny. This decision comes after an incident in October where a Cruise robotaxi was involved in an accident with a pedestrian in San Francisco, leading to the suspension of its driverless testing permit by the California DMV. The company is now focusing on rebuilding trust and enhancing its technology, with plans to relaunch in one unspecified city initially. Cruise has also undergone significant layoffs, reducing its workforce by about 25%, and is currently under investigation by the U.S. Justice Department and the Securities and Exchange Commission. The exit from these markets is part of a broader strategy to reassess and improve its autonomous driving technology before expanding again.

Read the Full AOL Article at:
[ https://www.aol.com/finance/gms-cruise-robotaxi-exit-result-151115473.html ]

N@N

GM's Cruise robotaxi exit a result of 'serious problems' from scaling too fast and continued high costs