GM's Cruise robotaxi business is latest growth initiative to falter

For years, General Motors CEO and Chair Mary Barra has promised a new future for the company, away from a stodgy metal-bending automaker into a tech-driven, forward-thinking company poised for growth.

DETROIT — For years, General Motors CEO and Chair Mary Barra has promised a new future for the company, away from a stodgy metal-bending automaker into a tech-driven, forward-thinking company poised for growth.

Part of the plan was for GM’s innovation division to identify trillions — yes, trillions — of dollars in new market opportunities such as electric commercial vehicles, auto insurance, military defense, autonomous vehicles and even, eventually, the potential for “flying cars,” also known as urban air mobility.

“We are creating world-class technology solutions and services that will change the way people move, along with new fleet solutions and entirely new business models,” Barra said during a virtual CES keynote in January 2022.

While GM has declined to disclose how much revenue such businesses have produced, Barra, with the ending of its Cruise robotaxi operations on Tuesday, made it clear that the automaker’s growth priorities have shifted amid a broader, industrywide retrench to preserve capital. Companies including GM are now focused on more “core” operations and adjacent business opportunities, including software, EVs and “personal autonomous vehicles.”

“You’ve got to really understand the cost of running a robotaxi fleet, which is fairly significant, and, again, not our core business,” Barra said during a Tuesday call with Wall Street analysts.

https://www.nbcnews.com/business/autos/gm-cruise-robotaxi-business-rcna184294

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