$10 Billion Down The Drain - The Cruise Is Sunk

[macarose]

Now that Cruise is sunk and GM has seen a solid $10 billion go down the drain, what future can GM conjure up for their shareholders?

Will they be able to increase market share in the EV space? Is it even possible given GM's severe cost disadvantage?

I hope the organization succeeds. But I just can't see GM having success with all their legacy costs and an extreme lack of scale with EVs here in North America.

They'll make billions elsewhere. But I really can't see them becoming the Tesla alternative.

 

[SC Maintenance]

Robotaxi has always been a pie in the sky idea - irrelevant on who is pushing it. The sensor tech just is not there yet. I don't see it making a huge difference. Or is there more that I am missing?

GM will do what GM always does, borrow money, buy back some stock, make more cars in China, or South Korea, or Mexico, or wherever, and ship them here.

 

[daves87rs]

Well, ICE is not dead, and they still have options there.

Rumor is that they might bring up some help from Mexico to add to the lineup.

EV will be there, but now at a much slower pace…..

 

[64bawagon]

The Hamtramck Zero plant is plagued with issues further darkening the prospects of GM being a major EV player.

 

[oil pan 4]

Now that Cruise is sunk and GM has seen a solid $10 billion go down the drain, what future can GM conjure up for their shareholders?

Will they be able to increase market share in the EV space? Is it even possible given GM's severe cost disadvantage?

I hope the organization succeeds. But I just can't see GM having success with all their legacy costs and an extreme lack of scale with EVs here in North America.

They'll make billions elsewhere. But I really can't see them becoming the Tesla alternative.

Nope GM laughed at Tesla when they owned and sat on all the best battery tech and doubled down on gas guzzlers. Then Tesla got too far ahead and since thats all Tesla does there never was going to be any "cathing up to them".

 

[AZjeff]

Now that Cruise is sunk and GM has seen a solid $10 billion go down the drain, what future can GM conjure up for their shareholders?

Could you provide a link to this? Thanks

 

[Vil_Riker]

China has been their largest and most profitable market. But with the 100% tariffs on Chinese EV-s in the US, GM might get retaliated against for sales inside China.

Overall, they are not in a very good position.

 

[supton]

Could you provide a link to this? Thanks

Not sure if this is what the OP is reading (probably not, but I had no idea what the heck this is all about and had to look--I thought a Cruise as a car model?). Link.

General Motors (GM) pulled the plug on its Cruise robotaxi business on Tuesday night, a move marking a dramatic step back in its autonomous ambitions that began eight years ago.

GM said it would merge its Cruise robotaxi business with its in-house, consumer-facing autonomous and driving assist technology group in charge of its Supercruise software. GM said it would no longer fund Cruise’s robotaxi development efforts, which it had done so since acquiring the company in March of 2016.

 

[alarmguy]

Now that Cruise is sunk and GM has seen a solid $10 billion go down the drain, what future can GM conjure up for their shareholders?

Will they be able to increase market share in the EV space? Is it even possible given GM's severe cost disadvantage?

I hope the organization succeeds. But I just can't see GM having success with all their legacy costs and an extreme lack of scale with EVs here in North America.

They'll make billions elsewhere. But I really can't see them becoming the Tesla alternative.

GM is doing very well and I am thrilled for them. Last of a few great American companies. A misnomer to suggest they are not. They have been far more profitable than Tesla over the last decade by a multitude of hundreds of percent. Maybe thousands.

Man their new Equinox EV is beautiful and certainly screams American buyer. Sat in one with the wife for about 30 minutes last month. Wife chose the 2025 Equinox Gas verision though for its more truck like stance compared to the sporty stance of the EV. I would certainly choose the EV version for myself though, Only thing is right now I need my Chevy Traverse for towing our boat.
GM is doing very well and I am thrilled for them. Last of a few great American companies.

The 10 billion isnt down the drain, Im sure everyone is aware all companies spend money on research and development. Im also sure Tesla has spent far more on it and still not as profitable as GM. Furthermore the GM research division is going after the profit, which is the super cruise for their vehicles. The ability to cut programs as times change is a benefit. I agree, their Cruise self driving has failed, all companies fail and learn. Let the others figure it out and if it's feasible one day, return to it.

 

[fantastic]

With the other makers going to focus on hybrids instead it's a profit move in the long term. EVs too expensive right now.

 

[KrisZ]

That’s how the “big boys” do it.

 

[dogememe]

It’s a bummer. Was looking forward to trying it at some point. Oh well, there’s always Waymo. Every time I go to SF I see them EVERYWHERE.

I think it’s fascinating and intend to use Waymo if I ever need a ride in SF. However, whenever I’m there I drove there with my car so I haven’t needed it.

As an introvert, driverless/self driving taxis sound phenomenal.

 

[burbguy82]

what future can GM conjure up for their shareholders

Bring back the Squarebody=instant success, go back to the basics "like a rock"

Build with a modern drivetrain, no bells and whistles, and let the aftermarket loose.

Put one of those little 3.0 Duramax engines in there, and you would have endless room to work on it if need be, and get 30mpg

 

[DuckRyder]

A truly autonomous self driving car is a ways down the road, a long ways.

There are resources dedicated to this sort of thing (UM M-City, VT VTTI others) and the glaring thing is that you cant really teach AI judgement, it all comes down to IF>Then no matter how well disguised, make it rare, or complicated or both and it gets even worse.

Also the more automation, the longer the reaction from hazard to driver take over.... I sort of doubt that i will see a car that can drive itself anywhere (rural or urban/suburban) without intervention in my lifetime.

 

[PandaBear]

The title is misleading. Sure they are pulling the plug on the robotaxi business but they can still salvage the R&D into future cars with self driving, or licensing it to others.

About whether robo taxi is a good idea that will be profitable: they likely will after some time, and might happen in China before the US (you guys put in too much political stuff and that thread got locked). In the US Tesla and Waymo will have it ready before GM. Will it go everywhere? Probably not, but it may go close enough for many urban people that they can walk 1 block afterward and be good enough, may work well enough for long haul truck if a small section is upgraded, or extend the range long enough so a human driver can sleep 8 hours in between and drive a 24 hour trip, etc.

Most companies need to have R&D even for just in case scenarios. 10B is just a business expense for the industry.

 

[PandaBear]

A truly autonomous self driving car is a ways down the road, a long ways.

There are resources dedicated to this sort of thing (UM M-City, VT VTTI others) and the glaring thing is that you cant really teach AI judgement, it all comes down to IF>Then no matter how well disguised, make it rare, or complicated or both and it gets even worse.

Also the more automation, the longer the reaction from hazard to driver take over.... I sort of doubt that i will see a car that can drive itself anywhere (rural or urban/suburban) without intervention in my lifetime.

People used to say the same about gasoline cars back in the horses days.

Roads will be updated to make it more self driving friendly, routes will be certified and cars will be designed for it. Before the cars days road have no divider no traffic signs no right of way no curb, then everything changed and upgraded and finally no more car problem. Sure you can't cross creeks like a horse and you need to drive where there's gas stations, but people adapt and new towns build around new roads and things went alright.

I would imagine self driving will start first in trucking and at night when fewer things can go wrong, and return on investment is more obvious. Throw it on a certified highway and let it run between 10pm to 6am, and let a trucker sleep between 2 shifts for a 24 hour run, that's 1 trucker's salary saving there.

 

[IndyIan]

A truly autonomous self driving car is a ways down the road, a long ways.

There are resources dedicated to this sort of thing (UM M-City, VT VTTI others) and the glaring thing is that you cant really teach AI judgement, it all comes down to IF>Then no matter how well disguised, make it rare, or complicated or both and it gets even worse.

Also the more automation, the longer the reaction from hazard to driver take over.... I sort of doubt that i will see a car that can drive itself anywhere (rural or urban/suburban) without intervention in my lifetime.

I think self driving cars aren't really that difficult if there is some basic infrastructure added to the roads to help guide them, and some sort of communication system between vehicles, including human driven ones. Also more strict adherence/enforcement of the road rules, would help eliminate the need for advanced autonomy to make decisions.
I think a population has to buy into idea that self driving is worth doing as well, so I'm pretty sure the US won't be a leader in this. Japan or S. Korea will probably figure it all out long before the US or Canada will...

 

[4WD]

I’d like to know which Moderator deleted my posts and what rule I broke …?

 

[E365]

Definitely not money “down the drain”, many of the people and tech will just shift to the SuperCruise program for consumer vehicles.

 

[Marrk]

The title is misleading. Sure they are pulling the plug on the robotaxi business but they can still salvage the R&D into future cars with self driving, or licensing it to others.

Definitely not money “down the drain”, many of the people and tech will just shift to the SuperCruise program for consumer vehicles.

That's what I was thinking. Also, the political environment is about to change. The Federal government has, to this point, incentivized the development of clean(er) technologies. This may (or may not) change.