General Motors is indefinitely abandoning plans to produce its self-driving taxi, Cruise Origin, as it refocuses on the troubled division.
GM CEO Mary Barra told shareholders on Tuesday that the company is “simplifying our path to scale by focusing our next self-driving vehicle on the next-generation Chevrolet Bolt rather than Origin, which has faced regulatory uncertainty due to its unique design.”
Barra also noted that the cost per vehicle of the Chevrolet Bolt will also be significantly lower, helping the company “optimize resources.”
The company announced in January plans to cut spending on cruises in half this year, or about $1 billion, as it tries to restart the division after last year’s disasters.
An analysis commissioned by GM said a series of technical failures led to an accident in October 2023 in which a woman was struck and dragged 20 feet by a Cruise robotaxi.
The company suspended its self-driving business and fired several executives, marking a major setback for the entire autonomous vehicle industry.
This also sparked an investigation by the Department of Justice.
Mark Whitten was appointed head of cruise earlier this year.
The company hopes that Whitten, a founding engineer of Xbox and Xbox Live, will help turn the company around and further its mission to make self-driving cars more widespread.
FOX Business’ Eric Revell and Chris Pandolfo contributed to this report.
