General Motor’s Cruise unit is embarking on a cost-cutting mission this year as it prepares to ramp up its operations. The firm’s balance sheet is under pressure due to mounting losses, which has led investors to question the viability of Cruise’s robotaxi concept.
Cruise’s Chief Operating Officer, Gil West, recently spoke at a tech conference where he stated that the company would continue to explore ways to reduce costs by examining both hardware and software components. This includes scrutinizing the quantity of components in the vehicles and driving down costs as the company progresses.
See also: GM’s Cruise Reaches One Million Miles with Fully Driverless Vehicles
According to Reuters, Cruise burned through almost $2 billion last year. Initially, the company had planned to launch a fleet of robotaxis in North America, but this rollout had to be postponed due to regulations, safety investigations, and challenging technological requirements.
The robotaxi industry is currently struggling in North America, with Ford and Volkswagen’s Argo AI self-driving unit closing down last fall. In the same vein, Alphabet’s Waymo has laid off over 8% of its workforce this year as part of the tech industry’s broader layoffs.
Cruise currently runs a small fleet in San Francisco, which has covered just over one million miles. The company is also testing the Cruise Origin vehicle in San Francisco and Tokyo in partnership with Honda.
