GM to reduce spending at Cruise
General Motors announced that it’s cutting spending at its self-driving car unit, Cruise.
“We expect the pace of Cruise expansion to be more deliberate when operations resume, and spending will be substantially lower in 2024 than it was in 2023,” General Motors CEO Mary Barra said during an investor call today. CFO Paul Jacobson added that spend at Cruise will be down “hundreds of millions of dollars” in ’24 from 2023.
Last month, the California DMV suspended Cruise’s autonomous vehicle deployment and driverless testing permits and the company later announced that it is pausing all driverless operations. Last week, Cruise co-founder and CEO Kyle Vogt announced his resignation from the company.
In 2022, Cruise and Mobilitas Insurance announced a collaboration that provides commercial insurance coverage for Cruise and its fleet of self-driving vehicles.