Setback For Honda-GM Cruise Venture: CEO Mibe Now Envisions 'Late 2020s' Launch For Self-Driving Cars In Tokyo
Portfolio Pulse from Anan Ashraf
Honda Motor Co's CEO Toshihiro Mibe announced a delay in the deployment of self-driving cars in central Tokyo, pushing the expected launch from 2026 to the late 2020s. This delay affects the joint venture with General Motors Co and its autonomous vehicle unit Cruise, which had planned to deploy Cruise Origin AVs without manual controls in Tokyo by early 2026. The delay follows a suspension of Cruise's autonomous vehicle operations in San Francisco by the California DMV over safety concerns, leading to a temporary pause in Origin AV production.
January 10, 2024 | 7:31 am
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NEGATIVE IMPACT
General Motors may face short-term negative impact due to the delay in the Honda joint venture for self-driving cars in Tokyo, compounded by the suspension of Cruise's operations over safety concerns.
General Motors, through its autonomous vehicle unit Cruise, is directly affected by the delay in the deployment of self-driving cars in Tokyo. This news, along with the recent suspension of Cruise's operations by the California DMV, may lead to negative investor sentiment in the short term. The pause in Origin AV production also suggests potential challenges ahead for GM's autonomous vehicle strategy.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Honda's delay in launching self-driving cars in Tokyo may negatively impact investor sentiment due to the postponement of a significant technological advancement and potential revenue stream.
The delay in the deployment of self-driving cars is a significant setback for Honda, as it pushes back the timeline for introducing a major innovation and potential source of revenue. The news may lead to short-term negative sentiment among investors, as it indicates a longer wait for the realization of returns on investment in autonomous vehicle technology.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80