A self-driving GM Bolt EV is seen during a media event where Cruise, GM's autonomous car unit, showed off its self-driving cars in San Francisco, California, U.S. November 28, 2017. /Reuters
General Motors (GM) announced on Tuesday that its Cruise self-driving unit will concentrate on developing a next-generation Chevrolet Bolt, indefinitely delaying its Origin vehicle, which does not have a steering wheel.
In 2022, GM requested approval from the National Highway Traffic Safety Administration to deploy up to 2,500 self-driving Origin vehicles annually. As the agency has yet to respond, GM decided to mitigate the regulatory risk by shifting focus to the more conventional Bolt EV platform for its Cruise robotaxi.
CEO Mary Barra expressed optimism about the Origin's future potential but highlighted the immediate need to mitigate regulatory challenges. The new Bolt platform does not require the same level of regulatory approval, allowing Cruise to proceed without delays.
"I do think in the future there's going to be opportunity for Origin – and so that remains open to us at the right time," she said.
Industry analysts recognize the lengthy and costly journey ahead for developing fully autonomous vehicles, citing significant engineering and regulatory challenges that will take years to overcome.
The Cruise Origin autonomous vehicle, a Honda and General Motors self-driving car partnership, is seen during its unveiling in San Francisco, California, U.S., January 21, 2020. /Reuters
On the same day, Tesla CEO Elon Musk spoke about advancements in Tesla's Full Self Driving (FSD) technology. Musk admitted that previous predictions were overly optimistic but expressed confidence in achieving unsupervised autonomy by next year. Tesla delayed its Robotaxi unveiling to October to implement further improvements.
Meanwhile, Alphabet's CFO, Ruth Porat, announced an additional $5 billion investment in its self-driving unit, Waymo, over the next few years. Waymo has begun testing a new robotaxi in San Francisco, built by Chinese automaker Zeekr, a Geely brand.
In November last year, GM's temporary decision to halt production of the fully autonomous Cruise Origin at its Detroit plant led to a $583 million charge. Barra emphasized that switching to the Bolt platform reduces regulatory risks, while Musk suggested that technical issues, rather than regulatory hurdles, were the primary reason for Cruise's decision to delay the Origin.
(With input from Reuters)