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GM SLAMS BRAKES ON SELF-DRIVING VEHICLE WITHOUT STEERING WHEEL

By David Shepardson
July 24, 20241:40 AM GMT+2Updated 4 days ago
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Item 1 of 2 A Cruise self-driving car, which is owned by General Motors Corp, is
seen outside the company’s headquarters in San Francisco where it does most of
its testing, in California, U.S., September 26, 2018. Picture taken on September
26, 2018. REUTERS/Heather Somerville/File Photo
[1/2]A Cruise self-driving car, which is owned by General Motors Corp, is seen
outside the company’s headquarters in San Francisco where it does most of its
testing, in California, U.S., September 26, 2018. Picture taken on September 26,
2018. REUTERS/Heather Somerville/File Photo Purchase Licensing Rights, opens new
tab

 * Summary
 * Companies

 * GM shifts focus to next-gen Bolt EV for Cruise robotaxi
 * Musk says Cruise tech 'not up to par'; GM calls that 'blatantly false'
 * Cruise faces multiple investigations after robotaxi accident

July 23 (Reuters) - General Motors' (GM.N), opens new tab Cruise self-driving
unit will focus its development efforts on a next-generation Chevrolet Bolt as
it indefinitely delays its planned Origin vehicle that would not have a steering
wheel, the automaker said on Tuesday.
In 2022, GM filed a petition with the National Highway Traffic Safety
Administration seeking permission to deploy up to 2,500 self-driving Origin
vehicles annually without human controls such as brake pedals or mirrors. The
agency has not acted on the request and GM cited the regulatory risk for its
decision.
Advertisement · Scroll to continue

GM will instead use a conventional next-generation Bolt EV as the platform for
its Cruise robotaxi, a move that will not require permission of U.S. regulators.
"I do think in the future there's going to be opportunity for Origin - and so
that remains open to us at the right time," GM CEO Mary Barra said.
Analysts and industry experts have said the race to develop autonomous driving
systems and robotaxis will be arduous, expensive and take years as the
technology faces engineering and regulatory hurdles.
Advertisement · Scroll to continue

Tesla CEO Elon Musk on Tuesday said the electric car leader has made a lot of
progress on Full Self Driving (FSD) and Robotaxi.
"My predictions on this have been overly optimistic in the past," he said on a
company conference call. "I would be shocked if we cannot do (unsupervised full
self-driving) next year."
He added that Tesla had delayed its unveiling of its Robotaxi product from
August to Oct. 10 to allow for vehicle improvements.

On a separate call on Tuesday, Alphabet (GOOGL.O), opens new tab Chief Financial
Officer Ruth Porat said the company will spend an additional $5 billion on its
self-driving subsidiary, Waymo, over the next few years.
Waymo also said it has started testing a new robotaxi in San Francisco built by
Chinese EV maker Zeekr, a Geely (GEELY.UL) brand.
GM in November said it had temporarily halted production of its fully autonomous
Cruise Origin, which has subway-like doors and campfire seating.

GM said its decision to pause Cruise production at a Detroit plant had triggered
a charge of $583 million.
"The main reason with switching from the Origin to the Bolt is we extinguish the
regulatory risk," Barra said.
Musk said the reason Cruise had backed away from the Origin was more because it
could not make the technology work.
"They're blaming regulators. That's misleading to do so," he said. "It's just
that their technology is not up to par."

GM spokesman Jim Cain called Musk's comment on Cruise "blatantly false."
"The issue was the unique layout and design of the Origin," he said. "The
technology that Cruise is developing gets better every day and no one should
forget that Cruise has driven 5 million-plus autonomous miles and Tesla has
driven zero, full stop."
Cruise faces a number of investigations - including by NHTSA, the Justice
Department and Securities and Exchange Commission - after an October accident in
which one of its robotaxis struck a pedestrian and dragged her 20 feet (six
meters). Cruise and GM came under heavy criticism after the accident and
California revoked its permit to operate driverless vehicles.
Kyle Vogt, who co-founded Cruise and quit as CEO in November under pressure
following the accident, wrote on X Tuesday that GM had killed the Origin.
"GM repeatedly finds themselves with a 5-10 year headstart, but then fumbles the
ball, shuts things down, and loses the lead," Vogt wrote, comparing it to GM's
early lead on electric vehicles in the 1990s that it lost.
Barra noted on Tuesday that Cruise in recent months had resumed testing of its
robotaxis with human safety drivers in three cities and recently hired a new
CEO.
Barra previously said the business could generate $50 billion in annual revenue
by 2030. Cruise has lost more than $8 billion since 2017 and in January GM said
it was cutting spending at Cruise by about $1 billion.

Stay up to date with the latest news, trends and innovations that are driving
the global automotive industry with the Reuters Auto File newsletter. Sign up
here.

Reporting by David Shepardson in washington; additional reporting by Hyunjoo Jin
and Greg Bensinger in San Francisco, Yuvraj Malik in Bengaluru and Ben Klayman
in Detroit, Editing by Emelia Sithole-Matarisee, Rod Nickel and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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