'GM's Cruise Plans Careful Re-Launch For Driverless Robotaxis' - Axios
Portfolio Pulse from Benzinga Newsdesk
Cruise, GM's autonomous vehicle subsidiary, is planning a cautious re-launch of its driverless robotaxi service in one city, potentially in Texas or Arizona, following safety concerns and a pedestrian accident in San Francisco. The company will focus on its electric Bolt robotaxis and lay off non-engineering staff. GM will pause production of the Origin van and does not plan to produce more in 2024. Cruise's license to operate in California has been revoked, making Texas or Phoenix more likely choices for the re-launch.
November 22, 2023 | 9:04 pm
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GM's subsidiary Cruise is re-launching its robotaxi service with a focus on the Bolt EV, laying off non-engineering staff, and pausing production of the Origin van. The re-launch aims to rebuild trust and credibility after safety incidents.
The news indicates a strategic shift and cost-cutting measures at Cruise, which could lead to short-term uncertainty for GM's stock. The focus on a single vehicle model and market could streamline operations but also limits potential growth. The impact on the stock is likely neutral in the short term as the market digests the changes and awaits the results of the re-launch.
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