GM Slashes Spending on Troubled Self-Driving Unit Cruise by $1 Billion

Despite ongoing investigations and a major accident, GM remains committed to Cruise and plans to release a timeline for its return to operations soon.

General Motors (GM) has announced a significant reduction in spending on its self-driving car unit, Cruise, by about $1 billion in 2024, following a series of setbacks including a pedestrian accident and subsequent investigations.
Cruise, which recorded a $2.7 billion pretax loss last year, has faced scrutiny after a robotaxi struck and dragged a pedestrian in San Francisco in October 2023, leading to the suspension of its permit to operate in California.
GM CEO Mary Barra has reiterated the company's commitment to Cruise, stating that they will continue to invest in the people advancing the software, specialized hardware, and AI capabilities, despite the unit's struggles.
Cruise is currently under investigation by the U.S. Justice Department and the Securities and Exchange Commission, and has faced criticism for withholding evidence from regulators and the public following the accident.
Despite the challenges, GM plans to 'refocus and relaunch Cruise,' with a timeline for the unit's return to operations expected to be released soon.