Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

General Motors’ Cruise parks all driverless cars in U.S. amid safety concerns

EditorHari Govind
Published 2023-10-27, 10:56 a/m
© Reuters.
GM
-

General Motors’ (NYSE:GM) robotaxi business, Cruise, has decided to suspend all driverless operations across the U.S. after California regulators deemed the vehicles unsafe for public operation and suspended the company’s self-driving permit.

“The most important thing for us right now is to take steps to rebuild public trust,” Cruise said in an online post late Thursday.

“Part of this involves taking a hard look inwards and at how we do work at Cruise.”

The suspension of Cruise's services adds to the challenges faced by GM in its pursuit of autonomous driving technologies. This setback comes on the heels of a turbulent week for the Detroit automaker, marked by a reduction in its electric-vehicle ambitions and the expansion of the United Auto Workers strike to one of its largest most lucrative plants.

GM's CEO Mary Barra has heavily invested in new technologies such as EVs and self-driving cars, striving to reduce dependence on traditional gas-engine models, which currently generate most of the company's revenue. However, the growth of these conventional models is limited due to new auto-emissions regulations.

Earlier this week, the California Department of Motor Vehicles revoked Cruise's self-driving permit, citing the company's misrepresentation of safety-related technology information.

Meanwhile, outside of California, Cruise has been expanding its operations in various U.S. cities, such as Austin, Texas, Houston, and Phoenix, deploying driverless fleets in a bid to ramp its business.

Cruise said the decision to halt fleetwide operations isn’t related to any new on-road incidents.

Last week, the NHTSA initiated a safety-defect investigation involving nearly 600 Cruise driverless cars. Additionally, last year, a California agency probed an anonymous letter alleging that Cruise was gearing up for an early launch of its robotaxi service.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Shares of GM are down 0.11% in pre-market trading Friday morning.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.