GM's Cruise Faces Setbacks Amid Accident Fallout and Layoffs

Despite significant challenges, including a major accident and leadership changes, GM remains committed to its autonomous vehicle subsidiary.

General Motors' autonomous vehicle subsidiary, Cruise, has faced a series of setbacks, including an accident in October that resulted in a pedestrian being dragged by a self-driving vehicle, leading to the grounding of Cruise's robotaxi fleet.
Following the accident, Cruise's leadership has been significantly reduced, with co-founders resigning and nine other leaders being ousted.
GM has announced significant cuts to spending and growth plans for Cruise, including pausing production of a new robotaxi and laying off 24% of its workforce.
Despite these challenges, GM CEO Mary Barra has expressed confidence in the team and commitment to supporting Cruise, emphasizing a focus on trust, accountability, and transparency.
There is growing industry-wide concern about the viability of autonomous vehicles as a profitable business, with some analysts suggesting that profitability is unlikely in the foreseeable future.