GM gives up on loss-making Cruise robotaxi business

STORY: General Motors is giving up on its Cruise robotaxi business.

The auto giant said Tuesday that it would end development at the loss-making unit, which had once been a top priority.

GM said too much time and resources would be required to make Cruise a success.

It also cited an increasingly competitive market for driverless cabs.

The company has spent over $10 billion on Cruise since 2016.

Only last year, Chief Executive Mary Barra had predicted the unit could make $50 billion in annual revenue by 2030.

But on Tuesday she called it ‘expendable.’

Now the technology won’t be abandoned, but will be folded into GM’s unit working on driver assistance systems.

There was no word on how many Cruise staff would be able to move over to the parent firm.

The change comes shortly after GM scaled back its plans for electric vehicles.

That saw it restructure its China business, and sell its stake in one battery joint venture.

All that left the firm focused on the more profitable business of making gasoline-powered pickup trucks and other large vehicles.

Among rivals, Ford began winding down its AI-driven cars unit two years ago.

But Tesla boss Elon Musk remains bullish on autonomous vehicles, having recently unveiled his firm’s proposed future robotaxi.

Meanwhile, Waymo is still set to expand.

The Alphabet unit said last week it would soon start ride-hailing services in Miami, and has recently raised billions in new funding.