General Motors is forgoing plans to produce its autonomous cab Cruise Origin indefinitely as it refocuses efforts on the troubled unit.
GM CEO Mary Barra told shareholders on Tuesday that the automaker will “simplify their path to scale by focusing their next autonomous vehicle on the next-generation Chevrolet Bolt, instead of the Origin,” which had been facing regulatory uncertainty because of its unique design.
Barra also noted that per-unit costs will also be much lower for the Chevrolet Bolt, helping the company “optimize its resources.”
In January, the automaker announced it was planning to cut spending on the Cruise in half or by roughly $1 billion this year as it relaunches the unit following last year’s accident.
According to an analysis commissioned by GM, a series of technical failures were to blame for the October 2023 accident in which a woman was struck and dragged by a Cruise robotaxi for 20 feet.
It marked a major setback for the entire autonomous vehicle industry as the company paused its driverless operations and several executives were dismissed.
It also prompted an investigation by the Justice Department.
Marc Whitten was tapped to lead Cruise early this year.
The company is hoping Whitten, a founding engineer at Xbox and Xbox Live, will help turn around the company and further its mission of making self-driving cars more commonplace.
FOX Business’ Eric Revell and Chris Pandolfo contributed to this report.
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