General Motors (GM) forecasts an annual saving of about $1 billion following the termination of its Cruise robotaxi venture, voiced by CEO and Chair Mary Barra during an earnings call.
The calculation surfaces around two months subsequent to GM’s announcement to halt financing its self-driving subsidiary, Cruise. Barra highlights GM’s restructuring plan, aiming to refocus its autonomous driving strategy on personal vehicles. This restructuring is anticipated to bring about annual savings approximated at $1 billion.
Igniting this practice, GM plans to incorporate Cruise employees into its team fully by mid-2022, as disclosed by CFO Paul Jacobson. He projects such efficient restructuring will amount to a $1 billion annual saving, measured against the $1.7 billion spent on Cruise in 2024.
Regardless of GM reporting a $2.9 billion loss for 2024’s fourth quarter, the company disclosed a net income gain of $6 billion for that year. The expenditures on Cruise, even excluding special items for the restructuring charge, were down from $800 million in 2023 to $400 million in the following quarter.
The decision to stop funding Cruise came as a surprise to its employees. GM now intents to enrich its Super Cruise capabilities, which is an advanced hands-free driving system for certain highways.
A retention offer was extended to Cruise employees in mid-January. While the survival of their jobs remains uncertain, GM continues to show openness towards potential strategic partnerships to lead in Level 4 autonomy.
The final decision on restructuring Cruise would be established “later this quarter”, as indicated by Barra during an earnings call on Tuesday.
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