GM pulls the plug on €9.5 billion robotaxi venture
Robotaxis are taxis that do not need a driver's participation - a revolution in transportation and potentially the future of the automotive industry. But are they really? General Motors, which has invested €9.5 billion in developing this technology, might think otherwise.
On 10th December, General Motors officially announced the termination of the Cruise project, which had recently been touted as the corporation's top priority. It turns out that the business based on autonomous taxis is causing the company losses. Therefore, the management has decided to halt further funding.
Since the project began in 2016, the American manufacturer has invested nearly €9.5 billion into it. Now, the Cruise programme will be downgraded, becoming part of a group working on driver assistance systems.
The decision is yet another sign of cost-cutting at GM, following the corporation's decision to limit the development of electric vehicles and sell shares in one of its battery factories. The company intends to focus primarily on the most profitable market segments, namely gasoline-powered pickups and trucks, reports "Reuters".
