GM’s Cruise Origin Robotaxi Is Officially Dead
The autonomous pod didn’t have a steering wheel or pedals, which led to “regulatory uncertainty.” But what will replace it?
The Cruise Origin autonomous pod that was supposed to be deployed on American streets “in the tens of thousands” is officially dead. The purpose-built autonomous vehicle didn’t have a steering wheel or pedals and featured campfire seating, which led to regulatory hurdles, General Motors, the parent company of Cruise, said.
Unveiled in 2020, the Origin was developed by GM and Honda with hopes that it would bring in healthy revenue from ridesharing. That never happened, however, with production paused in November 2023 after Cruise lost its permits to operate in California following a series of mishaps involving its Bolt EV robotaxis. Cruise will continue to operate even after the demise of the Origin, and it already has a replacement in the works.
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The next-generation Chevrolet Bolt EUV, slated to go into production next year, will replace the driverless pod in Cruise’s portfolio. This will allow the robotaxi company to save money and make it easier to scale operations after a shaky year.
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The Robotaxi revolution that never was
General Motors had high hopes for Cruise, its autonomous vehicle startup. After pouring billions of dollars into it, GM envisioned a future where it would rake in profits from a booming ridesharing industry. However, more than 10 years after its creation, Cruise has yet to turn a profit.
“The Cruise team will also simplify their path to scale by focusing their next autonomous vehicle on the next-generation Chevrolet Bolt, instead of the Origin,” said GM CEO Mary Barra in the company’s letter to shareholders for the second quarter financial results. “This addresses the regulatory uncertainty we faced with the Origin because of its unique design. In addition, per-unit costs will be much lower, which will help Cruise optimize its resources,” she added.
Gallery: Cruise Origin Reveal
After it had its permits revoked in California and voluntarily pulled its entire fleet from the streets, Cruise returned to Houston, Phoenix and Dallas for testing purposes but without the autonomous tech enabled.
Money-wise, GM’s autonomous taxi venture is doing better than last year, cutting expenses by $200 million in the second quarter compared to last year. However, the subsidiary still reported an operating loss of $1.14 billion, including a $605 million impairment charge.
Since 2018, Cruise lost well over $5 billion. Last year, following an incident where a Cruise robotaxi dragged a pedestrian who had initially been hit by a human-driven car, the company’s CEO, Kyle Vogt, resigned, and roughly 24% of the workforce was laid off.
Marc Whitten was hired as the new CEO, the position of chief safety officer was created and GM asserted more control over the AV startup.
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