The American auto giant General Motors is abandoning the dream of self-driving robotaxis after spending billions. Instead, the company plans to focus on assistance systems that could eventually enable autonomous driving in private cars. This change of course is expected to save one billion US dollars annually, as GM announced. Instead, the automaker wants to invest in assistance systems that could eventually allow autonomous driving in private cars.
The automaker had been working for a long time through its subsidiary Cruise to create a driverless taxi service. The project consumed around ten billion US dollars. Cruise had ambitious growth plans and aimed to start in Tokyo after launching in several US cities. Innovative vehicles without steering wheels and pedals were already being tested.
Accident knocked Cruise off course
In the fall of 2023, the expansion came to an abrupt halt following an accident in San Francisco. A woman was struck at an intersection by a car driven by a human and thrown in front of a driverless Cruise vehicle. The robotaxi was unable to stop and trapped the woman underneath. The software did not register the incident, allowing the vehicle to pull over to the side of the road. The woman was dragged about six meters under the vehicle.
The accident had severe consequences for Cruise, also because management initially downplayed its severity. Cruise lost its license for transportation services in San Francisco, the vehicles were grounded, and the company's leadership was replaced. Only a few months ago did the GM subsidiary resume test drives.
Google's sister company Waymo accelerates
The company now pointed out that expanding the robotaxi business would take time and consume significant resources, and the market is becoming increasingly competitive. Currently, Google's sister company Waymo is the most successful robotaxi developer and transports passengers in several US cities. Waymo vehicles now make more than 150,000 trips with passengers per week. Another competitor, Amazon-owned Zoox, plans to offer ride services soon, including in Las Vegas and San Francisco.
Musk announces himself as a rival
Over today's providers looms the shadow of Elon Musk: The Tesla CEO wants to start the production of a robotaxi without steering wheel and pedals in 2026 at the electric car manufacturer. The "Cybercab" presented in October is supposed to operate with only cameras, while Waymo and Zoox also rely on significantly more expensive laser radars that scan the environment. This would give Tesla a significant cost advantage.
Many experts doubt that safe autonomous driving in all situations is possible with cameras alone. However, Musk has gained a lot of political capital through his support for the future US President Donald Trump. As a result, industry observers in the USA can imagine looser regulation from which Tesla would benefit. Musk announced plans to build up to two million robotaxis per year. Apple already stopped its program for developing self-driving cars in February after years of development and billions in costs.
Microsoft writes off its stake
The decision by automaker General Motors to abandon its plans for robotaxis also impacts Microsoft. The company announced on Wednesday evening after the US stock market closed a write-down of around 800 million US dollars for the second quarter (ending in December). This will reduce earnings per share by about 9 cents, it was said. Microsoft holds a minority stake in GM subsidiary Cruise.
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