GM's Autonomous Vehicle Unit Becomes Cost Conscious Following Robotaxi Ramp Up - General Motors (NYSE:GM)

General Motors Co (NYSE:GM) robotaxi unit Cruise is eyeing cost cuts this year as mounting losses in the autonomous vehicle companies sparked investor concerns.
"We'll continue to look at hardware, software - both in terms of component costs as well as the quantity of components that are on the vehicle - and continue to drive cost out as we move forward," Reuters reports citing Cruise's COO Gil West at a technology conference.
At Cruise, General Motors burned through nearly $2 billion last year.
Fully autonomous vehicles failed to launch as quickly as expected due to cumbersome regulations, safety investigations, and arduous technology.
Last fall, Ford Motor Co (NYSE:F) and Volkswagen AG (OTC:VWAGY) shared plans to shutter their Argo AI self-driving unit and focus on driver-assistance technology that provided more immediate returns.
Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) self-driving technology unit, Waymo, has laid off over 8% of its workforce this year.
Cruise, which offers a limited service in San Francisco with a small fleet of Chevrolet Bolt fitted with driverless technology, has accumulated a little over a million driverless miles, West said.
Cruise is also developing a fully autonomous vehicle called Origin from scratch without a steering wheel and with subway-like doors for rideshare and deliveries.
West said Origin was in the final stages of certification and ready for full-scale production.
Most of the barriers to entry, including technological challenges and regulatory clearances, will likely be resolved in 2023, West said.
Price Action: GM shares traded higher by 0.32% at $40.58 premarket on the last check Tuesday.
Photo via Wikimedia Commons

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