General Motors is doubling down on the future by announcing the acquisition of Cruise Automation.
According to GM, the purpose of the acquisition is to speed up the development of autonomous vehicles and technology.
“Fully autonomous vehicles can bring our customers enormous benefits in terms of greater convenience, lower cost and improved safety for their daily mobility needs,” said GM President Dan Ammann.
Though General Motors did not disclose how much it spent on the acquisition, some reports peg the transaction at $1 billion in cash and stock.
Despite being acquired by GM, Cruise Automation will continue to be based in San Francisco and operate as an independent unit within GM’s recently-formed Autonomous Vehicle Development Team led by Doug Parks, GM vice president of autonomous technology and vehicle execution.
“GM’s commitment to autonomous vehicles is inspiring, deliberate, and completely in line with our vision to make transportation safer and more accessible,” said Kyle Vogt, founder of Cruise Automation. “We are excited to be partnering with GM and believe this is a ground-breaking and necessary step toward rapidly commercializing autonomous vehicle technology.”
Since the beginning of 2016, GM has made several bold steps to secure its future in personal mobility. The automaker made a $500 million investment into Lyft, thereby crafting a strategic partnership with the company, as well as launched Maven, GM’s personal car-sharing service.