UPDATED 20:45 EDT / JUNE 11 2024

EMERGING TECH

GM gives troubled Cruise self-driving car unit $850M amid strategic review

General Motors Co. announced today that it’s giving its troubled self-driving car unit, Cruise LLC, $850 million in funding while it works out what to do next in terms of its strategy and funding.

Bloomberg reported that the announcement was made by GM Chief Financial Officer Paul Jacobson at an investor conference in New York. He explained that GM is reviewing how it will fund the business going forward and will look at sources outside the automaker for cash. Jacobson also said that GM was considering the best way to use the technology developed by Cuise, be it for robotaxis, its current model, or for personally owned vehicles with part or full autonomy.

“I think this is a really important R&D phase, not just for the notion of robotaxi, but ultimately for personal autonomy,” Jacobson told investors. “It’s kind of a pay-as-you-go, but this buys us time to continue to pursue our strategic review.”

Trouble at Cruise, which has developed autonomous vehicles and was successfully trialing a robotic taxi service, started in September when reports emerged that two Cruise vehicles delayed an ambulance in San Francisco on Aug. 14, leading to a patient later dying in hospital.

On Oct. 2, a pedestrian who was hit by a car driven by a human driver was thrown into the path of a Cruise robotaxi. Instead of stopping, the Cruise vehicle dragged the woman 20 feet down the road before coming to a stop.

Following the two incidents, Cruise announced on Nov. 8 that it was recalling all of its 950 driverless vehicles. At the time, Cruise said the accident was the result of its “Collision Detection Subsystem” which “may cause the Cruise AV to attempt to pull over out of traffic instead of remaining stationary when a pullover is not the desired post-collision response.”

As a result, both Cruise Chief Executive Officer Kyle Vogt and Chief Product Officer Dan Kan quit the company later in November. With its C-suite jumping ship and its robotaxis grounded, it was then announced in December that Cruise was laying off 900 employees and nine additional executives.

Cruise recently started resuming testing its vehicles in Phoenix and Dallas again, but with trust in the vehicle’s safety aspects dented, it may be some time until it can assure both the public at large and investors that it’s safely back in the autonomous vehicle game.

Photo: Cruise

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU