GM pauses development of its self-driving car indefinitely

General Motors (GM) has announced a shift in its self-driving vehicle strategy, placing the futuristic Cruise Origin vehicle on indefinite hold. Instead, the company will channel its efforts towards developing a next-generation Chevrolet Bolt, which will feature advanced autonomous technology.

In 2022, GM sought permission from the National Highway Traffic Safety Administration (NHTSA) to deploy up to 2,500 Origin vehicles annually. These vehicles were designed without traditional human controls such as steering wheels, brake pedals, or mirrors. However, the regulatory body has yet to act on GM’s request, and the future of the Origin vehicle now appears uncertain.

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“GM and Cruise are optimising resources to focus the development of our next autonomous vehicle on the next-generation Bolt instead of the Origin,” a GM spokesperson explained. “This shift allows us to pursue an autonomous future more cost-effectively and avoid potential regulatory hurdles that could slow the deployment of the Origin.”

The decision to pivot away from the Origin comes after GM temporarily halted production of its fully autonomous Cruise Origin in November. The company had produced several hundred units of the Origin, which it deemed sufficient for short-term needs. The production pause at a Detroit facility resulted in a $583 million charge for GM.

Cruise, GM’s self-driving unit, has faced scrutiny following a high-profile accident in October. One of its robotaxis struck a pedestrian, dragging her for 20 feet (6 meters). This incident led to a wave of criticism and the revocation of Cruise’s permit to operate driverless vehicles in California. Furthermore, Cruise is under investigation by the NHTSA, the Justice Department, and the Securities and Exchange Commission (SEC) in connection with the accident.

GM CEO Mary Barra highlighted that despite the setback, Cruise has resumed testing its robotaxis with human safety drivers in three cities and recently appointed a new CEO. Barra remains optimistic about the future, asserting that Cruise could potentially generate $50 billion in annual revenue by 2030. However, the division has faced substantial financial challenges, losing over $8 billion since 2017. In January, GM announced plans to cut approximately $1 billion in spending at Cruise.

The pause on the Cruise Origin represents a recalibration of GM’s autonomous vehicle strategy, reflecting a cautious approach in navigating the complex landscape of self-driving technology and regulatory approval.