Negosyante News

November 22, 2024 11:24 am

GM Halts Production of Steering Wheel-Free Vehicle, Focuses on Next-Gen Chevrolet Bolt

DETROIT, Michigan — General Motors’ Cruise self-driving unit has decided to focus its development efforts on a next-generation Chevrolet Bolt, indefinitely delaying its planned Origin vehicle that would lack a steering wheel, the automaker announced on Tuesday.

In 2022, GM filed a petition with the National Highway Traffic Safety Administration (NHTSA) seeking permission to deploy up to 2,500 self-driving Origin vehicles annually without human controls such as brake pedals or mirrors. The agency has yet to act on the request, prompting GM to cite regulatory risk for its decision to shift focus.

GM will use a conventional next-generation Bolt EV as the platform for its Cruise robotaxi, avoiding the need for additional regulatory approval.

“I do think in the future there’s going to be opportunity for Origin – and so that remains open to us at the right time,” GM CEO Mary Barra said.

Analysts and industry experts have noted that developing autonomous driving systems and robotaxis is a challenging, expensive endeavor that faces numerous engineering and regulatory hurdles.

Tesla CEO Elon Musk acknowledged past overly optimistic predictions about Full Self Driving (FSD) and Robotaxi but expressed confidence in achieving unsupervised full self-driving next year. Tesla delayed the unveiling of its Robotaxi product from August to October 10 for vehicle improvements.

Alphabet’s Chief Financial Officer Ruth Porat announced an additional $5 billion investment in its self-driving subsidiary, Waymo, which has started testing a new robotaxi in San Francisco built by Chinese EV maker Zeekr, a Geely brand.

In November, GM temporarily halted production of its fully autonomous Cruise Origin, triggering a charge of $583 million. The Origin features subway-like doors and campfire seating. GM’s decision to pause Cruise production was made to mitigate regulatory risks, according to Barra.

Musk suggested that Cruise’s decision to back away from the Origin was due to technological challenges, not regulatory issues. “They’re blaming regulators. That’s misleading to do so,” he said. “It’s just that their technology is not up to par.”

GM spokesman Jim Cain refuted Musk’s claim, calling it “blatantly false” and emphasizing that the issue was the unique layout and design of the Origin. Cain added that Cruise’s technology improves daily and highlighted that Cruise has driven over 5 million autonomous miles, while Tesla has driven zero.

Cruise is currently under several investigations, including by the NHTSA, the Justice Department, and the Securities and Exchange Commission, following an October accident where one of its robotaxis struck a pedestrian. The accident led to heavy criticism and the revocation of Cruise’s permit to operate driverless vehicles in California.

Kyle Vogt, who co-founded Cruise and resigned as CEO in November under pressure following the accident, criticized GM on social media, alleging that the company repeatedly loses its technological lead.

Barra noted that Cruise has resumed testing its robotaxis with human safety drivers in three cities and recently appointed a new CEO. She previously stated that the business could generate $50 billion in annual revenue by 2030. Despite the optimism, Cruise has lost over $8 billion since 2017, and GM announced a $1 billion cut in spending at Cruise in January.

 

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