Cruise’s Robotaxi Service Will Shut Down As Gm Pulls Its Funding

General Motors said it would nary longer money its Cruise robotaxi activity arsenic it seeks to attraction autonomous conveyance betterment connected personally owned vehicles.

GM said Cruise labour would beryllium mixed pinch its psyche teams moving connected precocious driver assistance systems, arsenic bully arsenic its task to create personally owned autonomous vehicles.

“Consistent pinch GM’s superior allocation priorities, GM will nary longer money Cruise’s robotaxi betterment activity fixed nan sizeable clip and resources that would beryllium needed to modular nan business, connected pinch an progressively competitory robotaxi market,” nan automaker said successful a relationship published Tuesday.

It’s apt that GM’s move will consequence successful layoffs astatine Cruise, though nary are being announced correct now. What is clear is that Cruise’s testing successful Arizona and Texas will region arsenic nan institution decides its adjacent move. GM will petition repurchase its remaining shares of Cruise (the automaker owns 90 percent of nan company) and past Cruise’s committee will find adjacent steps, which includes restructuring, layoffs, aliases simply shutting down.

The shutdown of Cruise’s robotaxi activity comes amid a turbulent clip for autonomous vehicles. While Alphabet’s Waymo continues to oculus caller markets, different ventures personification faltered. The astir notable was Argo AI, which shutdown successful 2022 aft Ford and Volkswagen pulled funding.

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