GM pumps $850 million in Cruise to keep struggling robotaxi company afloat

General Motors is investing $850 million into Cruise to help cover the company’s operational costs after it was forced to shut down its robotaxi service when one of its driverless cars struck a pedestrian.

GM chief financial officer Paul Jacobson announced the investment onstage at Deutsche Bank’s Global Auto Industry Conference in New York City today. The money would be used to cover Cruise’s operational costs as it slowly resumes testing its autonomous vehicles in several US cities…

Cruise was a big money loser for GM, even prior to the incident last year in which one of its driverless vehicles dragged a pedestrian 20 feet in San Francisco after she was struck by a hit-and-run driver. The automaker has lost $8.2 billion on Cruise since 2017, with $3.48 billion lost in 2023 alone. Cruise recently agreed to pay at least $8 million in a settlement with the woman who was injured in the October 2nd incident.

Receive Our Newsletter

Get the latest Safety21 news sent to your inbox.