Facing challenges in 2023 due to accidents and internal shifts, Cruise Robotaxis encountered a turbulent year. Since the end of the previous year, Cruise's taxi operations have been halted, following a California ban and a voluntary recall of hundreds of vehicles for software enhancements.

General Motors $850 million investment aims to revive Cruise as it gradually resumes Testing in Phoenix, Dallas, and now Houston as of Tuesday.

GM $850 Million Investment Fuels Cruise Robotaxis

It cannot be denied that Cruise Robotaxis undergone serious problems that affected its operations drastically. Recently, it had arrived with an $850 million settlement with the injured woman from an accident involving one of its Robotaxis. But now it's making a comeback.

Afterall the hurdles, Cruise Robotaxis is back and with GM's back up of $850 million funding.  As detailed by TechCrunch, during the Deutsche Bank's Global Automotive Industry Conference, GM's CFO Paul Jacobson disclosed the injection of capital.

This announcement signifies a strategic financial move by GM to support its initiatives, demonstrating a commitment to bolstering the automotive sector. Tiffany Testo, a spokesperson for Cruise, informed TechCrunch that the capital injection would serve to fill funding gaps until the company can establish a sustainable long-term financial strategy.

Without delving into specifics, Testo mentioned the possibility of forging new partnerships and securing external funding as part of Cruise's future financial plans. With GM having decided to cut Cruise's spending by "hundreds of millions" in 2024, the $850 million investment that was made recently indicates a significant change in financial approach.

Despite this injection, Patrick Morrisey, GM's VP of corporate communications, affirmed to TechCrunch that the cost-cutting measures remain ongoing, indicating a cautious approach to financial management within the Cruise division.

READ MORE: Honda Introduces Game-Changing N-VAN e Electric Vehicle at $ $15,500

Further details about this latest development were provided by The Verge. General Motors has committed $850 million investment towards Cruise to support the company's operational expenses following the temporary suspension of its robotaxi service due to a pedestrian-involved incident.

Cruise has been a significant financial burden for GM, exacerbated by past challenges such as the episode where one of its driverless cars dragged a pedestrian in San Francisco after a hit-and-run collision. The automaker's investment in Cruise comes amidst substantial losses, totaling $8.2 billion since 2017, with a notable $3.48 billion loss recorded in 2023 alone.

Cruise Robotaxis Back on Streets with Human Drivers Backup

CarBuzz stated that General Motors has updated its estimates for EV production this year in reaction to the diminishing demand for electric vehicles (EVs). GM's revised prediction, which calls for producing 200,000 to 250,000 electric vehicles by the end of 2024, takes into account the changing dynamics of the automotive industry's market, as highlighted by Automotive News.

CarBuzz reported that Cruise robotaxis resumed public testing recently, following a string of incidents and critical assessments indicating the technology required significant refinement before widespread deployment.

Previous concerns included instances of a Cruise autonomous vehicle dragging a pedestrian, collisions with emergency vehicles, and challenges in detecting children. The current tests involve robotaxis operating on roads with human drivers serving as backup.

Moreover, CarBuzz's previous coverage highlighted Cruise's recent resumption of self-driving technology trials in Phoenix, Arizona, marking the first such tests since October.

While these testing endeavors represent a step towards enhancing the safety of self-driving technology, there remains considerable distance to cover before it reaches a level suitable for public deployment.

The inclusion of human backups during the trials serves as a precautionary measure to mitigate the risk of significant incidents.

RELATED ARTICLE: Urban Streets Buzz as Robotaxis Reconquer Roads, Safety Concerns Still Exist

Copyright @ MOTORTIMES, All rights reserved. Do not reproduce without permission.