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GM’s Struggling Cruise Robotaxi Unit Plans Scaled-Back Service

2023-11-23 06:45
General Motors Co.’s autonomous-vehicle business, Cruise, plans to resume service gradually after a series of missteps led it
GM’s Struggling Cruise Robotaxi Unit Plans Scaled-Back Service

General Motors Co.’s autonomous-vehicle business, Cruise, plans to resume service gradually after a series of missteps led it to halt all robotaxi operations last month.

Cruise President Mo Elshenawy told employees in an email Wednesday that the company will eventually restart in a single city. It will focus in the near term on retrofitted Chevrolet Bolts while delaying plans for its driverless Origin vehicle, according to the email, details of which were confirmed by a spokesperson.

“Once we have taken steps to improve our safety culture and rebuild trust, our strategy is to relaunch in one city and prove our performance there, before expanding,” Cruise said in an emailed statement.

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The decision marks a strategic shift for a business that had already operated in multiple cities — including San Francisco, Phoenix and Austin — and until recently planned to expand to others.

Last month, California’s Department of Motor Vehicles suspended Cruise’s permit to operate driverless cars in the state and accused the company of withholding crucial video of an accident involving a pedestrian. The GM unit grounded its entire fleet shortly thereafter, and within the past week Cruise Chief Executive Officer Kyle Vogt abruptly stepped down.

Elshenawy, who was named president and chief technology officer following Vogt’s departure, didn’t specify in which city the company would resume service. It could be in Texas or Arizona, according to Axios, which reported Cruise’s strategic shift earlier.

GM’s shares were little changed after regular trading in New York.