Paul Young’s Post

GM’s Shift: A New Direction for Autonomous Driving Big changes are happening at General Motors! The company is stepping back from robotaxi development to focus on something closer to home—autonomous technology for personal vehicles. This move is about creating smarter, safer, and more convenient driving experiences while staying efficient with resources. Here’s what stood out to me: 1. Customer-Centric Focus: Instead of robotaxis, GM is betting on personal autonomy as the future of transportation. 2. Smart Cost Management: By refocusing efforts, GM plans to save over $1 billion annually by 2025. 3. Vision for Growth: Combining Cruise’s expertise with GM’s scale and manufacturing power positions them to lead in personal vehicle autonomy. Let’s discuss: 1. Does this shift reflect what the European market needs—a stronger focus on personal vehicles over shared mobility solutions? 2. How can European automakers navigate this trend while balancing innovation and cost-efficiency? What do you think—is this the right call for GM and the industry? #AutonomousDriving #FutureOfMobility #Innovation #AutomotiveIndustry #Leadership #EuropeMarket

Lot's to unpack today with the big news from General Motors that they will stop funding Cruise. What does it all mean? Here's are my thoughts: 1️⃣ It’s not all bad news for the #AutonomousVehicles industry. First, media might speculate it's bad news for the #AV industry but that's a bit of an overstatement. Cruise had been suspended for over a year, with reports in late 2023 suggesting they had just over $1B in runway left—unsustainable given their quarterly burn rate of $300-400M. Many, including myself, speculated GM might sell Cruise’s IP to recoup part of their $5B+ investment. Instead, nothing materialized, leading us to today’s cost-cutting decision. In the meantime Waymo and Zoox have scaled dramatically. Let's also not leave out WeRide and Pony.ai. 2️⃣ GM’s strategic pivot might be a short-term win, but could be costly in terms of long-term #strategy. By stepping away from the #rideshare market, GM seems to have decided they’re a car company first, not a software or mobility company. While this may please shareholders by reducing losses/expenses and allowing GM to focus on #ADAS features to compete with Tesla Autopilot / FSD in the near term, it could be a missed opportunity to capture the lucrative automated rideshare and fleet market. This creates a gap that Tesla, Zoox, or even new players might fill. We also can't forget that there is ton of Chinese capital out there with BYD and GEELY who both have shared vehicles ideas. Zeekr Technology Europe still is still pursuing a shared vehicle with Waymo and Volkswagen Group still aspires for a shared ID Buzz platform with a large scale demo in Hamburg pending. 3️⃣ A broad lesson: traditional #automakers still struggle with radical innovation. From BMW’s hesitation to shift away from fossil-fuel mainstays like the 3-series, to Ford and Mercedes’ slow progress in delivering Level 3 automation, to Cruise cancellation of the Origin, OEMs are facing challenges making bold, long-term bets that take. GM's decision to leave the rideshare—despite its enormous potential—represent this challenge. 4️⃣ A personal AV pivot raises questions. In the press release, GM says it will focus on “fully autonomous vehicles for personal use.” But with Level 4 components still prohibitively expensive, shared mobility platforms seem far more viable in the short term. [And let’s be honest—who really needs a self-driving Chevy Silverado?] It could be that companies like Waymo and WeRide are able to capture a large and profitable rideshare market, and GM is left without a strategic Self-Driving Software (SDS) provider. Lots of possibilities but also questions. Moreover, while the shared mobility vision remains alive, the lesson from Cruise may be clear that it requires a diverse and distributed stack of strategic partners, willing to be bold and resolute in adhering to a long-term vision for #sustainablemobility. ***Link to my thoughts in the The New York Times in comments.

William Riggs provides an excellent analysis and summary of the market following the news that GM is withdrawing from Cruise. This move marks a significant shift in the autonomous vehicle industry, and it's interesting to see how different stakeholders are reacting.

More news about Automonous Vehicles!

General Motors' recent decision to halt funding for its Cruise robotaxi division marks a significant shift in the automotive landscape. By reallocating resources towards enhancing autonomous driving technologies in personal vehicles, GM is responding to mounting costs and stiff competition in the robotaxi market. This strategic pivot isn't just about cost savings; it’s a clear recognition that the future of mobility lies in improving driver-assistance systems for consumers. With over $10 billion already invested in Cruise, GM is now focusing on immediate returns rather than the prolonged challenges of scaling robotaxis. The initial market reaction has been positive, with GM's shares rising 3.2%. This move signals a commitment to innovation in personal vehicle autonomy, potentially redefining safety and affordability in driving. As the industry shifts, GM could emerge as a leader in advanced driver-assistance systems, setting new standards for technology that benefits all drivers. What are your thoughts on this strategic realignment?

The increasing need for electric, autonomous, and connected vehicles is reshaping the traditional automotive industry across Michigan, California, Texas, and more. Read our latest report on where the biggest automotive tech hubs in the US are located and how they are shaping the automotive landscape: https://lnkd.in/gydnDqN2 #automotive #us #mobility #ustechhubs #automotivetechhubs

The auto industry is currently experiencing a significant shift in its approach to electric vehicles (EVs) and autonomous driving technology. After years of aggressive investment, automakers are scaling back their spending due to a combination of rising costs, regulatory uncertainty, and slowing demand. This change in strategy marks a notable departure from previous plans that […]

🚗 Exciting News Alert! 🚗 As General Motors announces a significant pivot to absorb its self-driving car subsidiary Cruise, merging efforts to develop driver assistance features and fully autonomous vehicles, a new chapter in the automotive industry is set to unfold. The decision showcases GM's commitment to innovation and evolving technologies in the pursuit of safer and more efficient transportation solutions. Here are some predictions and insights on this game-changing move: 1. **Strengthening GM's Competitive Position**: - This strategic move is expected to position GM as a frontrunner in the autonomous vehicle market, bolstering its competitive edge against rivals. - By leveraging Cruise's expertise and integrating it with their existing capabilities, GM is poised to accelerate the development of cutting-edge driver-assistance technologies. 2. **Focus on Customer-Centric Solutions**: - The emphasis on developing fully autonomous personal vehicles highlights GM's proactive approach towards meeting the evolving needs and expectations of customers. - By prioritizing safety and convenience, GM aims to revolutionize the way people experience mobility, ushering in a more connected and autonomous future. 3. **Unlocking New Opportunities**: - The convergence of resources and talent from Cruise and GM heralds the dawn of groundbreaking advancements in autonomous technology. - This collaboration paves the way for the exploration of innovative business models and partnerships, opening up a realm of possibilities for growth and expansion. 4. **Impact on the Industry**: - GM's decision to pivot towards autonomous vehicle development is set to spark a ripple effect across the automotive landscape, influencing industry trends and shaping the future of mobility. - As traditional automakers like GM embrace the transformative power of autonomous technology, the stage is set for a paradigm shift that will redefine the way we perceive transportation. In conclusion, with GM steering towards an integrated approach to autonomous driving, we can anticipate a paradigm shift in the automotive sector, driving innovation and paving the way for a future where self-driving vehicles become a mainstream reality. Stay tuned for the exciting journey ahead! 🌟 #AutonomousVehicles #Innovation #FutureOfMobility

😱 Shocking: General Motors is killing Cruise, the autonomous driving 🤖 unit that was started more than a decade ago. Let’s put in in context. ⚠️ As always, just my personal opinion. Please add your thoughts as a comment and reshare. 🙋♂️ Drop a comment if you want to get the Cruise analysis from earlier this year. — 👉 Cruise started in 2013, GM acquired the company in 2016 for up to $1 billion to build an AD business. 👉 Between 2016 and now more than $10 billion in funding has been invested into the company. Most of the funding came from GM. SoftBank Group Corp., Microsoft, Honda and others invested heavily as well. 👉 The company scaled its technology and began operating a growing fleet in San Francisco 🇺🇸 and other cities until an accident in San Francisco resulted in a hard stop of all operations in October 2023. 👉 Getting trust back, developing the technology and vehicles 🚗, and re-plan the market entry was the focus in the last year. 👉 Sad to see the next OEM dropping out of the autonomous driving future. Ford cancelled the Argo AI project, Motional by Hyundai seems to be at risk as well. 👉 What are the reasons for the decision: 🔘 General Motors realized that additional funding (I once predicted up to $50 billions) is needed to reach breakeven. The company is as most of the other OEMs fighting for its life agains cheaper and more compelling alternatives in China 🇨🇳, supply chain disruptions and political instability. It needed to make a pick. 🔘 This would be another loss making business for the next 5 to 10 years. Patience that an automotive OEM and their shareholders don’t have 🤑. 🔘 It took 10 years 😱 to realize that autonomous mobility is a fleet and ops heavy business with probably low margins. GM eventually realized that it does not want to be in this business 🤷♂️. 🔘 Not mentioned by GM, but the narrative of Waymo, Tesla and Chinese players (Baidu, Inc., QCraft AI, AutoX, WeRide) is too strong 💪. 👉 Seems that OEMs are not the right investor for a technology that capital intensive and need additional years to scale. Let’s see what will happen with the other OEM funded AD programs 🥶. 👉 As a face saving move, some of the Cruise technology and team might continue in the Super Drive devision within General Motors, focusing on ADAS systems for private vehicles 🚗. 👉 ADAS became on of the global battles, it’s seen as technology to make a brand differentiation based on a positive business case. 🔘 OEMs shifting their focus to ADAS instead of AD, General Motors is following Ford Motor Company and others. 🔘 Cusotmer demand globally for ADAS is increasing, driven by the progress in China. 🔘 International OEMs need to develop two versions of ADAS systems, one for China and one for the U.S. and Europe. #mobility #AD #adas #automotiv

Cruise is being shutdown by General Motors 😯 Some really interesting points made by Augustin Friedel 🚲 🛴 🛵 🚘 in his post. Check below. 👇 This just shows how tough is the market of self-driving vehicles / robotaxis, and that (really) huge capital is needed to be able to play this game. It's a big question if other OEMs will follow this path considering most of them have more important battles to fight in upcoming years and budgets are not endless. 🤔