Following the latest trials and tribulations of Cruise – General Motors’ autonomous driving subsidiary – operating costs for the robotaxi company were swiftly and drastically reduced by hundreds of millions of dollars back in November 2023. Now, it appears as though Cruise’s funding will be reduced even further in the 2024 calendar year.
According to GM CFO Paul Jacobson, Cruise expenses are expected to be approximately $1 billion lower this year. Notably, this development comes shortly after the results from the Quinn Emanuel law firm’s external investigation were released.
“Our planned 2024 investment in Cruise reflects our more deliberate and cadence go-to-market strategy, and we are developing new financial targets and a new roadmap,” GM CEO Mary Barra stated. “Spending will be down considerably this year, but we will continue to invest in the people who are advancing the software, specialized hardware, and AI capabilities.”
It’s worth noting that Cruise will eventually restart operations in a single, yet-unnamed city. As such, costs will be significantly reduced anyways.
“We are committed to Cruise. When we look at the technology, the foundational technology is sound. We had already demonstrated and validated externally that Cruise technology is already safer than a human driver. One of the things we’ve learned is humans expect technology computers to be much more safe than their expectations they have for other people. And with that knowledge, we are already working on what the level of the technology needs to be to meet the consumer’s expectations.”
“The other big learning was, as you roll out technology that is as transformative as this and has incredible benefits to safety, you have to do it in a way where you’re really working with the regulators at the local, state, and federal level, as well as first responders. So, as we roll out anywhere, we are going to make sure we build the right relationships, they understand the technology, they understand the benefit of the technology, and that’s what we’ll do.”
As a reminder, General Motors has pushed back its timeline for Cruise and its long-term goals, which include $80 billion in revenue by 2030.