FYI: The Cruise Origin autonomous vehicle that was set to revolutionize American streets has been discontinued, as regulatory challenges and operational setbacks led to its demise.
The Demise of the Cruise Origin Autonomous Pod
In a disappointing turn of events, the Cruise Origin autonomous pod, which was expected to be a game-changer on American roads, has been officially scrapped. This purpose-built autonomous vehicle, created by General Motors (GM) and Honda, lacked a steering wheel and pedals and featured a unique campfire seating arrangement. These design choices, however, resulted in significant regulatory hurdles that ultimately stalled its deployment.
Launched in 2020, the Origin was envisioned to generate considerable revenue from ridesharing. However, production came to a halt in November 2023 after a series of incidents involving Cruise’s Bolt EV robotaxis led to the revocation of the company’s permits in California. Despite these setbacks, Cruise is moving forward with a new autonomous vehicle strategy.
A New Direction for Cruise: Chevy Bolt EUV
Cruise will pivot towards using the next-generation Chevrolet Bolt EUV, which is expected to start production next year. This shift aims to lower costs and simplify operations after a tumultuous period. The Bolt EUV will replace the now-defunct Origin in Cruise’s lineup, allowing the company to scale operations more efficiently.
Cruise’s Financial Struggles and Strategic Shifts
General Motors had high hopes for Cruise, investing billions with the expectation of a lucrative future in the ridesharing industry. Yet, over a decade since its inception, the autonomous vehicle subsidiary has struggled to turn a profit. In the second quarter financial results, GM CEO Mary Barra addressed the regulatory uncertainties faced by the Origin and emphasized the benefits of focusing on the more conventional Bolt EUV to optimize resources and reduce per-unit costs.
Cruise had to pull its fleet from California streets after losing its permits but continues to test its vehicles in Houston, Phoenix, and Dallas, albeit without autonomous technology enabled. While cost-cutting measures have led to a $200 million reduction in expenses compared to the previous year, Cruise still reported a significant operating loss of $1.14 billion, including a $605 million impairment charge.
Leadership Changes and the Path Forward
Cruise has incurred losses exceeding $5 billion since 2018. The company faced a major setback last year when a Cruise robotaxi dragged a pedestrian accidentally hit by a human-driven car, resulting in the resignation of CEO Kyle Vogt and a 24% reduction in workforce. Marc Whitten was subsequently appointed as the new CEO, and GM established the role of chief safety officer to tighten control over the startup.
A Mixed Future in Autonomous Vehicles
Despite the discontinuation of the Origin, Cruise is optimistic about its future with the upcoming Chevrolet Bolt EUV. The company remains dedicated to advancing autonomous vehicle technology while addressing previous safety concerns and regulatory challenges.
The transition from the innovative, yet overly ambitious Origin to the more practical and scalable Bolt EUV marks a significant shift in Cruise’s strategy, reflecting a more grounded approach in navigating the complex landscape of autonomous vehicles.
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William Kouch, Editor of Automotive.fyi
