General Motors has introduced that it’ll stop funding the event of Cruise self-driving taxis.
The firm says it’ll now “refocus autonomous driving development on personal vehicles”.
GM additionally pointed to the more and more aggressive robotaxi market as a motive for the transfer.
In October, Tesla boss Elon Musk unveiled the electrical automobile large's long-awaited robotaxi, CyberCab, on the Warner Bros. Studio in Burbank, California.
GM attributed the change in technique to “the substantial time and resources required to grow the business.”
The firm didn’t say what number of Cruise staff may be despatched to GM.
GM, which owns about 90% of Cruise, stated it has agreements with different shareholders that will improve its possession to greater than 97%.
Cruz stated he’ll lower 900 jobs in December 2023About 1 / 4 of its workforce.
The announcement got here as security officers have been investigating the corporate following reviews of pedestrians being injured.
Cruise had beforehand pulled all of its US automobiles from testing after California halted driverless testing permits.
The Detroit-based producer's chief government Mary Barra beforehand predicted the cruise enterprise might generate $50bn (£39bn) in annual income by 2030.
Rival motormakers have additionally struggled with tasks to construct autonomous automobiles.
In 2022, Ford and Volkswagen introduced that they’d shut down their self-driving automobile three way partnership Argo AI.
Meanwhile, the rising robotaxi business can be attracting main gamers.
Along with Tesla, opponents in constructing self-driving cabs embody Waymo, a subsidiary of Google's father or mother firm Alphabet, and expertise large Amazon.
Ride-hailing companies Uber and Lyft even have ambitions to make use of autonomous automobiles.
With inputs from BBC
