CyberGuy’s Kurt Knutsson joins “The Big Money Show” to discuss San Francisco’s new law allowing self-driving car tickets.
general motors The company announced Tuesday that it will cut spending on its robotaxis division Cruise by half, or about $1 billion, in 2024. The company is looking to refocus the division after a pedestrian accident temporarily halted its driverless operations and several executives were fired.
Mr. Cruz announced last week that the Justice Department and Securities and Exchange Commission (SEC) are investigating the company following the October crash. cruise robo taxi It struck a pedestrian who had originally been hit by another vehicle in an adjacent lane, dragging the pedestrian 20 feet.
The California Department of Transportation has revoked Cruise’s license to operate driverless vehicles, and the company has suspended its robotaxi operations across the United States.
GM CEO Mary Barra said on a conference call with investors Tuesday that the company is “refocusing and restarting our cruise business” and will reveal a timeline for restarting operations “soon.” Ta.
Analysis reveals how GM’s Cruise robotaxi collided with pedestrian and was dragged 20 feet
GM’s robotaxi unit Cruise will have its investment cut in half this year as its parent company refocuses on its self-driving car division following the accident. (Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
“Last week, we announced the results of our third-party review, and we have already begun implementing important changes to build a better Cruise,” Barra said on a conference call. “We are committed to regaining the trust of regulators and the public through our actions.
GM optimistic in 2024, betting on ‘resilient’ US economy
“Our 2024 investment plans for Cruise reflect our more measured and rhythmic go-to-market strategy. We are also developing new financial goals and a new roadmap. Although spending will be significantly lower this year, we will continue to invest in our people.”The company is evolving its software, specialized hardware, and AI capabilities. This reflects our commitment to our vision of delivering the safety benefits and scalable and profitable business of self-driving technology. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| GM | general motors company | 38.16 | +2.77 | +7.81% |
Cruise temporarily suspends driverless vehicle operations across the U.S. pending safety investigation
General Motors CEO Mary Barra says the company remains committed to Cruise even as GM is scaling back investments while it works on a new cruise roadmap. Told. (Reuters/Elizabeth Franz/Reuters Photo)
Cruise spent $1.9 billion in 2023 and had a pre-tax loss of $2.7 billion, excluding $500 million in restructuring charges incurred in 2023. Company personnel reductionsaid the GM. Cruise suffered total losses of more than $8 billion, but Barra previously said the business could generate $50 billion in annual revenue by 2030.
Barra said the company is “fully committed to Cruise” and will cooperate with any government investigation into the self-driving car sector. He said on a conference call with analysts that Cruise plans to hold its self-driving software to higher standards for safety than those of human drivers, in part because said, “Humans expect far more security from computers than from human operators.”
GM’s Cruise cuts 24% of workforce, fires 9 executives amid robotaxi safety investigation
Cruise has fired seven executives and laid off some staff amid a safety investigation. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
He added that Cruise’s spending this year will focus on retaining software and engineering talent. Barra said the company does not need to invest further in vehicles or operating personnel at this time, given that the department’s previous plans to expand robotaxi operations to 20 cities are on hold. .
GM has asked engineering firm Exponent to conduct a technical review of the October accident. An investigation revealed that the Cruze vehicle had a mapping error that incorrectly identified the collision with the woman as a side collision. Cruise recalled the vehicle and updated the software.
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Cruise has cut its workforce by a quarter and laid off nine executives since the accident, but CEO Kyle Vogt and co-founder Dan Kang have resigned amid controversy.
Mr. Cruz did not immediately respond to a request for comment.
Reuters contributed to this report.
