GM and Waymo: How far can we go? An analyst panel discussion of Cruise’s Robotaxis Decay and Loss

When it finishes acquiring the remaining shares, GM anticipates achieving cost savings of $1 billion annually, GM chief financial officer Paul Jacobson said.

The shutdown of Cruise’s robotaxi service comes amid a turbulent time for autonomous vehicles. Tesla has said it plans to launch its own robotaxi service in 2025, though questions remain about the company’s approach to the technology. Other ventures have failed as Waymo continues to look for new markets. The most notable was Argo AI, which shut down in 2022 after Ford and Volkswagen pulled funding.

Cruise never quite recovered from the incident, which critics said pointed to a flawed approach to safety. The robotaxi company has paid millions in fines related to the incident to federal and state authorities. Nine top executives and company founder and CEO Kyle Vogt left, and eventually GM laid off nearly a quarter of Cruise’s employees. This summer, Cruise began a small amount of testing in a number of cities but never again offered the same service.

In a speech to the analysts Tuesday, GM’s Chief Executive Officer, Mary Barra, said that they found it too expensive and far from the manufacturer’s core business of building and selling cars.

Mary Barra said in a call with investors Tuesday evening that combining forces would be more efficient and consistent with the capital allocation priorities.

GM Cruise, Inc., a Novel Automobile Manufacturing Company, and the Prospects for Autonomous Driving in the Next 10 Years

The company is looking to use cruise technology to improve their Super Cruise tech, which is intended to work on specific highways. Drivers are warned not to drive autonomously while using Super Cruise.

Eventually, GM intends to sell “level 4” vehicles to car buyers, which can drive completely autonomously on some but not all roads. “We know people everywhere love to drive their own vehicles, but not in every situation,” Barra told analysts.

The company says it has a deal with other shareholders that will allow it to own more than 97 percent of the firm. The changes that GM will make to Cruise could possibly lead to layoffs, but no one knows for sure.