GM Revving Back? Cadillac Maker Reportedly Scraps Ultra Cruise To Double Down On Older Driver Assistance System
Portfolio Pulse from Anan Ashraf
General Motors Co (NYSE:GM) is reportedly halting its Ultra Cruise program to refocus on its existing Super Cruise driver assistance system. Ultra Cruise, which was set to launch in 2023, was a comprehensive system using camera, radar, and LiDAR sensors. The decision comes as GM faces challenges in autonomous driving technology, with its Cruise division suspending U.S. operations after an incident and announcing cost-cutting measures. GM's third-quarter EBIT-adjusted loss for Cruise was $732 million, up 47% from the previous year.
January 16, 2024 | 10:40 am
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NEUTRAL IMPACT
General Motors is refocusing on Super Cruise and discontinuing Ultra Cruise, which may impact investor sentiment due to the shift in strategy and ongoing challenges in autonomous driving.
The discontinuation of Ultra Cruise could be seen as a setback in GM's technological advancement, potentially affecting investor confidence. However, refocusing on Super Cruise might streamline efforts and resources, which could be viewed positively in the long term. The short-term impact is likely neutral as the market digests the news and awaits further developments.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100