GM's Cruise to focus on cost cuts as it ramps up robotaxis
Reuters
Published Mar 06, 2023 08:59PM ET
Updated Mar 06, 2023 09:56PM ET
By Abhirup Roy
SAN FRANCISCO (Reuters) - General Motors Co (NYSE:GM)'s robotaxi unit Cruise is focusing on cutting costs this year, a top executive said on Monday, as mounting losses in the autonomous vehicle companies have sparked investor concerns and forced some to shut shop.
"We'll continue to look at hardware, software - both in terms of component costs as well as the quantity of components that are on the vehicle - and continue to drive cost out as we move forward," Cruise's chief operating officer Gil West said at a technology conference.
At Cruise, General Motors burned through nearly $2 billion last year. West did not give details of spending estimates this year.
Fully autonomous vehicles have not rolled out as fast as originally expected due mostly to cumbersome regulations, safety investigations and arduous technology.
Ford Motor (NYSE:F) Co and Volkswagen AG (OTC:VWAGY) last fall announced they would shutter their Argo AI self-driving unit and focus on driver-assistance technology that provided more immediate returns.
Cruise's rival and Alphabet (NASDAQ:GOOGL) Inc's self-driving technology unit, Waymo, has this year laid off over 8% of its workforce.
Cruise, which offers a limited service in San Francisco with a small fleet of Chevrolet Bolt fitted with driverless technology, has accumulated a little over a million driverless miles, West said.
The company is also developing a fully autonomous vehicle called Origin from scratch without a steering wheel and with subway-like doors for rideshare and deliveries.
West said Origin was in the final stages of certification and ready for full-scale production, calling it a "big unlock" for the company this year.
Most of the barriers to entry, including technological challenges and regulatory clearances, are expected to be resolved in 2023, helping the company expand and grow quickly, West said.
"All that means more rides, more deliveries ... and then we start to increase our revenue flywheel," West said. "This is a really pivotal year for us that will really transform not just Cruise but the whole perception of autonomous vehicles."
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Written By: Reuters
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