Yet Another Executive At GM's Cruise Steps Down As Company's Relaunch Timeline Remains Vague
Portfolio Pulse from Anan Ashraf
Senior Vice President of Autonomous Vehicle Platforms at General Motors Co's (NYSE:GM) autonomous driving unit Cruise has resigned, marking another executive departure since the company suspended operations in the US last year following a pedestrian accident. GM reported a $3.48 billion operating loss at Cruise in 2023, up from $3.24 billion in 2022. Despite these challenges, GM CEO Mary Barra reaffirmed the company's commitment to Cruise, indicating a reduction in spending but continued investment in self-driving technology.
February 16, 2024 | 7:45 am
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General Motors Co's autonomous driving unit Cruise sees another executive departure amid a reported $3.48 billion loss in 2023. Despite challenges, GM remains committed to Cruise, planning to reduce spending while continuing investment in self-driving technology.
The departure of a senior executive from Cruise, coupled with the reported increase in operating loss from 2022 to 2023, signals ongoing challenges within the unit. However, GM's commitment to Cruise, despite these setbacks, indicates a strategic importance to the company's future in autonomous driving technology. The short-term impact on GM's stock could be negative due to the uncertainty surrounding Cruise's future and the financial losses incurred. However, the company's continued investment in self-driving technology could mitigate some of the negative perceptions.
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IMPORTANCE 90
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