General Motors (GM) announced on Tuesday that it has completed the full acquisition of its Cruise division, signaling a shift in focus toward developing autonomous technology for personal vehicles, rather than continuing with the robotaxi business. This strategic move comes after GM decided in December to halt funding for Cruise’s robotaxi operations, following a series of challenges including a pedestrian injury caused by one of its robotaxis.
GM plans to integrate Cruise’s autonomous technology into its Super Cruise system, which allows hands-free driving on 750,000 miles of North American roads. Super Cruise is already available on over 20 GM vehicle models, and the company aims to expand its use in urban environments. The merger also involves significant staff reductions, with Cruise cutting around 50% of its workforce, impacting nearly 1,000 employees according to sources close to the matter.
The goal of the acquisition is to accelerate the development of autonomy at scale for personal vehicles, rather than robotaxis. GM believes that this merger will help advance both assisted driving and full autonomy. The company has forecasted that Super Cruise will generate approximately $2 billion in annual revenue within the next five years.
Dave Richardson, senior vice president of software and services engineering at GM, expressed that this move will speed up efforts to bring autonomous driving capabilities to personal vehicles. The transition marks a pivotal moment for GM, as it shifts its focus toward achieving greater success with its hands-free driving technology.