GM indefinitely pauses Cruise Origin autonomous vehicle while it refocuses unit
GM in January said it was cutting spending on Cruise in half or by roughly $1B
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General Motors is forgoing plans to produce its autonomous cab Cruise Origin indefinitely as it refocuses efforts on the troubled unit.
GM CEO Mary Barra told shareholders on Tuesday that the automaker will "simplify their path to scale by focusing their next autonomous vehicle on the next-generation Chevrolet Bolt, instead of the Origin," which had been facing regulatory uncertainty because of its unique design.
Barra also noted that per-unit costs will also be much lower for the Chevrolet Bolt, helping the company "optimize its resources."
ANALYSIS REVEALS HOW GM'S CRUISE ROBOTAXI STRUCK AND DRAGGED PEDESTRIAN 20 FEET
In January, the automaker announced it was planning to cut spending on the Cruise in half or by roughly $1 billion this year as it relaunches the unit following last year's accident.
The Cruise Origin, a self-driving vehicle with no steering wheel or pedals, is displayed at the Honda Motor's booth during the press day of the Japan Mobility Show in Tokyo on October 25, 2023. ( KAZUHIRO NOGI/AFP via Getty Images / Getty Images)
According to an analysis commissioned by GM, a series of technical failures were to blame for the October 2023 accident in which a woman was struck and dragged by a Cruise robotaxi for 20 feet.
It marked a major setback for the entire autonomous vehicle industry as the company paused its driverless operations and several executives were dismissed.
It also prompted an investigation by the Justice Department.
A Cruise, which is a driverless robot taxi, is seen during operation in San Francisco, California, on July 24, 2023. ((Photo by Tayfun Coskun/Anadolu Agency via Getty Images) / Getty Images)
GM'S CRUISE CUTTING 24% OF WORKFORCE, FIRES 9 EXECS AMID ROBOTAXI SAFETY PROBE
Marc Whitten was tapped to lead Cruise early this year.
General Motors
The company is hoping Whitten, a founding engineer at Xbox and Xbox Live, will help turn around the company and further its mission of making self-driving cars more commonplace.
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FOX Business' Eric Revell and Chris Pandolfo contributed to this report.