General Motors’ self-driving unit, Cruise, has made the strategic decision to shift its development focus from the futuristic Origin vehicle to the next-generation Chevrolet Bolt. The Origin, which lacks a steering wheel or human controls, had faced regulatory challenges in the US, and Cruise aims to expedite its progress towards an autonomous future.
In 2022, GM filed a petition with the National Highway Traffic Safety Administration (NHTSA) to deploy up to 2,500 self-driving Origin vehicles annually. However, the NHTSA has yet to take action on the request. As a result, Cruise and GM have decided to concentrate their efforts on the more cost-effective and scalable option of developing the next autonomous vehicle based on the Chevrolet Bolt platform.
By focusing on the next-generation Bolt, Cruise aims to accelerate the development of its autonomous technology and overcome potential regulatory hurdles. This shift in strategy allows them to pursue their goal of a self-driving future while avoiding uncertainties and delays associated with ensuring compliance with current regulations.
In November, GM announced a temporary halt in production of the fully autonomous Cruise Origin vehicle. However, Cruise claims to have already produced hundreds of Origin vehicles, which will be sufficient for their near-term plans when they decide to ramp up production again.
Nevertheless, Cruise is currently facing multiple investigations as a result of an accident involving one of its robotaxis in October. This incident led to criticism of Cruise and GM, and prompted the California Department of Motor Vehicles to revoke Cruise’s permit to operate driverless vehicles. The company is under scrutiny by the NHTSA, the Justice Department, and the Securities and Exchange Commission.
Despite these challenges, GM CEO Mary Barra remains optimistic about Cruise’s future. She stated that Cruise has resumed testing its robotaxis with human safety drivers in Phoenix, Houston, and Dallas. Additionally, Cruise recently hired a new CEO to lead the company’s efforts. Barra emphasized that the revised plan will lead to lower per-unit costs, enabling Cruise to optimize its resources.
While Cruise has incurred significant losses of over $8 billion since 2017, GM believes in the long-term potential of the self-driving business. Barra has previously projected that Cruise could generate $50 billion in annual revenue by 2030. To strengthen Cruise’s financial position, GM announced in January that it would reduce spending at Cruise by approximately $1 billion.
In summary, General Motors’ Cruise unit is shifting its development focus from the futuristic Origin vehicle to the next-generation Chevrolet Bolt. This strategic change aims to accelerate progress towards an autonomous future, while overcoming regulatory hurdles and optimizing resources. Despite challenges and ongoing investigations, GM remains committed to the potential of Cruise and its self-driving technology.
