https://www.cnbc.com/2024/12/10/gm-halts-funding-of-robotaxi-development-by-cruise.html Skip Navigation logo logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Climate * Transportation * Industrials * Retail * Wealth * Sports * Life * Small Business Investing * Personal Finance * Fintech * Financial Advisors * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * CNBC Disruptor 50 * Tech Guide Politics * White House * Policy * Defense * Congress * Equity and Opportunity Video * Latest Video * Full Episodes * Livestream * Live Audio * Live TV Schedule * CNBC Podcasts * CEO Interviews * CNBC Documentaries * Digital Originals Watchlist Investing Club * Trust Portfolio * Analysis * Trade Alerts * Meeting Videos * Homestretch * Jim's Columns * Education * Subscribe * Sign In Join IC PRO * Pro News * Livestream * Full Episodes * Stock Screener * Market Forecast * Options Investing * Chart Investing * Subscribe * Sign In Join Pro Livestream Menu * Make It * select + ALL SELECT + Credit Cards + Loans + Banking + Mortgages + Insurance + Credit Monitoring + Personal Finance + Small Business + Taxes + Help for Low Credit Scores + Investing + SELECT + All Credit Cards + Find the Credit Card for You + Best Credit Cards + Best Rewards Credit Cards + Best Travel Credit Cards + Best 0% APR Credit Cards + Best Balance Transfer Credit Cards + Best Cash Back Credit Cards + Best Credit Card Welcome Bonuses + Best Credit Cards to Build Credit + SELECT + All Loans + Find the Best Personal Loan for You + Best Personal Loans + Best Debt Consolidation Loans + Best Loans to Refinance Credit Card Debt + Best Loans with Fast Funding + Best Small Personal Loans + Best Large Personal Loans + Best Personal Loans to Apply Online + Best Student Loan Refinance + SELECT + All Banking + Find the Savings Account for You + Best High Yield Savings Accounts + Best Big Bank Savings Accounts + Best Big Bank Checking Accounts + Best No Fee Checking Accounts + No Overdraft Fee Checking Accounts + Best Checking Account Bonuses + Best Money Market Accounts + Best CDs + Best Credit Unions + SELECT + All Mortgages + Best Mortgages + Best Mortgages for Small Down Payment + Best Mortgages for No Down Payment + Best Mortgages with No Origination Fee + Best Mortgages for Average Credit Score + Adjustable Rate Mortgages + Affording a Mortgage + SELECT + All Insurance + Best Life Insurance + Best Homeowners Insurance + Best Renters Insurance + Best Car Insurance + Travel Insurance + SELECT + All Credit Monitoring + Best Credit Monitoring Services + Best Identity Theft Protection + How to Boost Your Credit Score + Credit Repair Services + SELECT + All Personal Finance + Best Budgeting Apps + Best Expense Tracker Apps + Best Money Transfer Apps + Best Resale Apps and Sites + Buy Now Pay Later (BNPL) Apps + Best Debt Relief + SELECT + All Small Business + Best Small Business Savings Accounts + Best Small Business Checking Accounts + Best Credit Cards for Small Business + Best Small Business Loans + Best Tax Software for Small Business + SELECT + All Taxes + Filing For Free + Best Tax Software + Best Tax Software for Small Businesses + Tax Refunds + Tax Brackets + Tax Tips + Tax By State + Tax Payment Plans + SELECT + All Help for Low Credit Scores + Best Credit Cards for Bad Credit + Best Personal Loans for Bad Credit + Best Debt Consolidation Loans for Bad Credit + Personal Loans if You Don't Have Credit + Best Credit Cards for Building Credit + Personal Loans for 580 Credit Score or Lower + Personal Loans for 670 Credit Score or Lower + Best Mortgages for Bad Credit + Best Hardship Loans + How to Boost Your Credit Score + SELECT + All Investing + Best IRA Accounts + Best Roth IRA Accounts + Best Investing Apps + Best Free Stock Trading Platforms + Best Robo-Advisors + Index Funds + Mutual Funds + ETFs + Bonds * USA * INTL * Livestream Search quotes, news & videos * Livestream Watchlist SIGN IN logo Markets Business Investing Tech Politics Video Watchlist Investing Club Join IC PRO Join Pro Livestream Menu Tech GM exits robotaxi market, will bring Cruise operations in house Published Tue, Dec 10 20244:15 PM ESTUpdated 6 Min Ago thumbnail Lora Kolodny@in/lorakolodny/ thumbnail Michael Wayland@MikeWayland WATCH LIVE Key Points * General Motors will no longer fund its Cruise division's robotaxi development, the company said on Tuesday. * The Detroit automaker cited the increasingly competitive robotaxi market, capital allocation priorities and the considerable time and resources necessary to grow the business as reasons for its decision. * GM said it plans to instead "realign its autonomous driving strategy" to focus on advanced driver assistance systems and autonomous systems for use in personal vehicles. A in San Francisco, California, US, on Thursday Aug. 10, 2023. David Paul Morris | Bloomberg | Getty Images After spending more than $10 billion on its robotaxi unit, General Motors is abandoning its Cruise driverless ride-hailing service. The Detroit automaker on Tuesday said it will no longer fund its Cruise division's robotaxi development and will instead fold the unit into its broader tech team. "Cruise was well on its way to a robotaxi business -- but when you look at the fact you're deploying a fleet, there's a whole operations piece of doing that," GM CEO Mary Barra said on a call Tuesday. Barra said GM would instead focus on the development of autonomous systems for use in personal vehicles. GM cited the increasingly competitive robotaxi market, capital allocation priorities and the considerable time and resources necessary to grow the business as reasons for its decision. The company will combine the majority-owned Cruise LLC with GM technical teams. Barra, who also serves as board chair of Cruise, said the companies have yet to determine how many employees will move to GM. Cruise has nearly 2,300 employees, a GM spokesperson told CNBC. GM acquired Cruise in 2016. The automaker currently owns about 90% of Cruise and has agreements with other shareholders that will raise its ownership to more than 97%, GM said in a statement. GM anticipates it will complete acquisition of remaining Cruise shares from outside shareholders by early 2025, CFO Paul Jacobson said Tuesday. GM's current annual expenditure on Cruise amounted to about $2 billion, and the restructuring would cut that by more than half, Jacobson said. Honda, an outside investor in Cruise, told CNBC that it had planned to launch a driverless ride-hail service in Japan in early 2026, but will now re-assess those plans and make adjustments if needed. "Honda remains committed to various research and development initiatives aimed at providing new mobility solutions to our customers in Japan," a Honda spokesperson said on Tuesday. Honda said its total investment in Cruise was $852 million. "In case it was unclear before, it is clear now: GM are a bunch of dummies," Cruise founder Kyle Vogt posted on X on Tuesday. Vogt left the robotaxi company in November 2023. An early entrant in the U.S. robotaxi market, Cruise faltered and grounded its driverless operations in October 2023. The decision to halt its emerging robotaxi service came after collisions, a clash with regulators and the suspension of permits that allowed it to operate a robotaxi ride hailing service in California. GM in July announced that it would indefinitely delay production of the Origin autonomous vehicle as its Cruise self-driving unit attempted to relaunch operations. At that point, Cruise began to focus on using the next-generation Chevrolet Bolt for development of its autonomous vehicles. As Cruise's operations were on hold, its robotaxi rivals gained ground. Alphabet-owned Waymo has begun to operate commercial robotaxi services across several major U.S. metro areas, with the company last week announcing its plans to expand into Miami. Chinese autonomous vehicle makers including Pony.ai and WeRide have rolled out in overseas markets as well. Tesla, meanwhile, showed off design concepts for a self-driving Cybercab at an event in October. Tesla still classifies the Autopilot and Full Self-Driving software in its vehicles as "partially automated driving systems," which require a human to be ready to steer or brake at all times. In an October earnings call, Tesla CEO Elon Musk said the company will launch a self-driving ride-hailing service in California and Texas as early as 2025. SoftBank-funded Wayve is testing its autonomous vehicles in San Francisco, and Amazon-owned Zoox is also testing its autonomous vehicles, which do not feature steering wheels, in several U.S. cities including San Francisco. WATCH: Uber and Lyft drop on news Waymo is expanding to Miami Uber and Lyft drop on news Waymo is expanding to Miami watch now VIDEO2:3702:37 Uber and Lyft drop on news Waymo is expanding to Miami Fast Money CNBC logo * * * * * * * * Subscribe to CNBC PRO * Subscribe to Investing Club * Licensing & Reprints * CNBC Councils * Select Personal Finance * CNBC on Peacock * Join the CNBC Panel * Supply Chain Values * Select Shopping * Closed Captioning * Digital Products * News Releases * Internships * Corrections * About CNBC * Ad Choices * Site Map * Podcasts * Careers * Help * Contact * News Tips Got a confidential news tip? We want to hear from you. 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