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General Motors announce a cut of approximately $1 billion in spending on its robotaxi unit

In a strategic move to realign its autonomous vehicle venture, General Motors (GM) has announced a cut of approximately $1 billion in spending on its Cruise robotaxi unit for the year 2024. This decision follows increased regulatory scrutiny after an October 2 accident in San Francisco involving a Cruise robotaxi and a pedestrian.

GM CEO Mary Barra, addressing the challenges faced by Cruise, expressed the company’s commitment to the autonomous vehicle venture, stating, “We are committed to Cruise.” Barra also outlined plans to “refocus and relaunch Cruise” and assured that the company would soon unveil a timetable for resuming operations.

Acknowledging the lessons learned from the incident, Barra emphasized the need for autonomous vehicles to meet higher safety standards, as “humans expect computers to be much more safe” than human operators. Cruise is actively cooperating with ongoing government investigations into the October 2 accident.

Despite the setback, Barra remains optimistic about Cruise’s future and stressed the importance of retaining software and engineering talent. She revealed that Cruise’s spending in the upcoming year would be directed toward enhancing technological capabilities, particularly in software development and engineering.

The decision to halt previous plans for the expansion of Cruise to 20 cities has enabled GM to redirect spending away from vehicles and operational personnel, allowing the company to recalibrate its strategy and address regulatory concerns in the autonomous vehicle space.

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