GM Slashes Cruise Budget Post-Accident: Financial Trim Sparks Industry Attention

General Motors (GM) to Reduce Cruise Spending

GM

General Motors (GM) is set to reduce investment in its self-driving division, Cruise, following a recent pedestrian accident, as reported by the Financial Times on Tuesday.

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Limited Response to Safety Concerns

GM to expand Cruise robotaxi service

Despite Reuters’ request for comment, neither GM nor Cruise has responded so far.

In October, a driverless cab from Cruise failed to stop in time, colliding with a pedestrian previously struck by a hit-and-run driver. This incident has sparked safety concerns regarding the deployment of robotaxis.

In response, Cruise took the step in November to halt all supervised and manual car trips across the United States. Concurrently, the company initiated an extensive safety review of its robotaxis, leading to internal disruptions and prompting the resignations of CEO Kyle Vogt and Chief Product Officer Daniel Kan.

Last week, GM’s Robotaxi unit announced plans to reintroduce services in an undisclosed city before expanding to others. The focus in the immediate future will be on Cruise’s autonomous vehicles based on the Bolt platform.

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