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GM Completes Full Acquisition of Cruise to Focus on Autonomous Personal Vehicles

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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.

 

GM Shifts Focus to Super Cruise After Robotaxi Setback

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General Motors (GM) is shifting its technology strategy toward its Super Cruise driver assistance system after discontinuing its costly robotaxi venture, Cruise. The company expects Super Cruise, a partially automated driving system similar to Tesla’s Autopilot, to generate approximately $2 billion in annual revenue within five years.

Super Cruise, available on select Cadillac and large SUV models, enhances driver convenience while ensuring attentiveness through a robust sensing system. Unlike Tesla’s Autopilot, Super Cruise actively monitors driver engagement, offering a more structured approach to hands-free driving. Customers can access the technology as a standard or optional feature, with optional pricing between $2,200 and $2,500. After a free three-year trial, users can continue with a subscription at $25 per month or $250 annually.

Despite GM’s push into software-driven vehicle technologies, its stock remains undervalued compared to Tesla. Tesla’s valuation is around 120 times expected earnings, reflecting its tech-driven appeal, while GM trades at just five times earnings. Investors also remain cautious about potential tariffs under the Trump administration, which contributed to an 8.9% drop in GM shares following its earnings report.

However, GM CEO Mary Barra remains optimistic about Super Cruise’s growth. The automaker expects to double its fleet of 360,000 Super Cruise-enabled vehicles in 2025. Currently, about 20% of users subscribe after their trial period ends, and GM aims to increase its subscription revenue as more vehicles reach their renewal window.

While Super Cruise involves hardware costs such as cameras and radar, analysts believe its software component will be highly profitable. Recurring subscription revenue could boost customer retention and brand loyalty, strengthening GM’s long-term position in the driver-assistance market.