Cruise Automation Expanding With Pasadena Office0
Cruise Automation, GM’s autonomous vehicle subsidiary, is expanding its presences in Southern California with the lease of new office space in Pasadena, according to FutureCar. The company signed a lease for 47,051 square feet in a two-story building at 465 North Halstead Street. It’s located near the Hastings Village Shopping Center.
“This lease signing is a major win for the City of Pasadena,” said Kevin Duffy of CBRE, a commercial real estate services and investment firm, in a prepared statement about the lease. “Capturing yet another significant engineering/technology tenant provides further evidence that Pasadena is an extremely desirable and ever-growing tech hub in Southern California with access to intellectual capital.”
General Motors bought Cruise in 2016 for a rumored $1 billion. Since then, the subsidiary has received investments from SoftBank and Honda—$2.25 billion and $2 billion, respectively. Cruise Automation’s current valuation is over $14 billion.
While the subsidiary came in under its $1 billion budget for 2018, the company did make significant strides in the autonomous vehicle space. Last year saw Cruise significantly improved its average AV disengagements over 2017. Earlier this year, the company also published a video that shows a Cruise Automation self-driving vehicle successfully navigating San Francisco streets without any human engagement, showing strong levels of progress from earlier demonstrations.
Cruise’s California expansion comes as General Motors undergoes a massive restructuring, focusing its resources on autonomous and electric vehicles while doubling its efforts in those spaces. The company is closing five North American factories and laying off thousands as it prepares to save $6 billion by 2020. In addition to the Pasadena office, Cruise is also opening a new office in the Seattle office sometime this year.
Cruise is also preparing to launch its autonomous ride-sharing service this year while beginning its partnership with meal delivery company DoorDash. Cruise is likely to launch its ride-sharing service in San Francisco. GM has again allocated $1 billion for Curries in 2019.
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