Key Points:
- GM’s Cruise is shifting focus from the Origin vehicle to a next-generation Chevrolet Bolt for autonomous development.
- The Origin project faces regulatory uncertainty, with the NHTSA yet to approve its deployment.
- Cruise is under multiple investigations following a pedestrian accident involving one of its robotaxis.
- Cruise has lost over $8 billion since 2017, prompting GM to cut its spending by $1 billion in January.
General Motors’ Cruise self-driving unit has announced a strategic shift in its development efforts, pivoting from its ambitious Origin vehicle to focus on a next-generation Chevrolet Bolt. This move, disclosed on Tuesday, aims to create a more scalable and cost-effective path toward an autonomous future amidst regulatory uncertainties and recent setbacks.
In 2022, GM filed a petition with the National Highway Traffic Safety Administration (NHTSA) seeking approval to deploy up to 2,500 self-driving Origin vehicles annually. These vehicles, designed without traditional human controls such as steering wheels, brake pedals, or mirrors, featured innovative elements like subway-style doors and campfire seating. However, the NHTSA has yet to act on GM’s request, leading to the indefinite postponement of the Origin project. It remains unclear if GM will pursue this vehicle in the future.
“GM and Cruise are optimizing resources to focus development of our next autonomous vehicle on the next-generation Bolt instead of the Origin,” stated a GM spokesperson. This strategic redirection aims to accelerate the pursuit of an autonomous future while circumventing the complex regulatory landscape that could hinder the scaling of the Origin.
In November, GM temporarily halted production of its fully autonomous Cruise Origin. Despite this, Cruise informed employees that it had already produced hundreds of Origin vehicles, sufficient for the near term when production resumes. The decision to pause production at the Detroit plant resulted in a substantial charge of $583 million for GM.
Cruise is currently under multiple investigations, including by the NHTSA, the Justice Department, and the Securities and Exchange Commission, following an October incident where one of its robotaxis struck and dragged a pedestrian. This accident led to significant criticism and the revocation of Cruise’s permit to operate driverless vehicles in California.
This isn’t the first time GM has faced regulatory challenges with autonomous vehicles. In 2018, the automaker petitioned the NHTSA to allow a Chevrolet Bolt-based vehicle without steering wheels or brake pedals, but the petition was withdrawn in 2020.
GM CEO Mary Barra noted that Cruise has resumed testing its robotaxis with human safety drivers in three cities and has recently appointed a new CEO. Barra had previously projected that Cruise could generate $50 billion in annual revenue by 2030. However, the unit has incurred losses exceeding $8 billion since 2017, leading GM to announce a $1 billion reduction in Cruise’s spending in January.
