General Motors’ imminent return to the European market has renewed interest in the company on this side of the Atlantic, and is confirmation of the major overhaul it has undergone in embracing electrification over the past few years.
But amid the optimism, the quite astonishing financial figures posted by one of its companies earlier this year haven’t gone unnoticed.
In late July, GM reported that its self-driving subsidiary Cruise had lost $500 million during the second quarter of 2022 – broadly $5 million a day. This took total losses for the year to a hefty $900 million, up from $600 million for the same period in 2021.
Execs have remained bullish throughout. GM CEO Mary Barra, for example, told investors in July that she still believed that Cruise could generate $50 billion a year in revenue from automated vehicle services and technology by 2030.
And there is no immediate panic for cash, as at the time the losses were revealed, Cruise was reported to have $3.7 billion at its disposal and $5 billion credit from GM to buy autonomous Origin EVs (although this cash will run out in approximately two years if losses continue at the same rate).
It is abundantly clear, though, that Cruise is at a critical juncture and needs to start making some tangible progress. And in recent months, there has finally been some concrete evidence that it is doing so. The first significant step came in late June, when it was granted a permit to charge for driverless rides in its autonomous Chevrolet Bolt cabs in San Francisco.
Commercialised self-driving robotaxi services have been a major target for autonomous vehicle (AV) companies for some time, and by receiving its licence to operate, Cruise became the first to be allowed to do so in a central area of a major US city, beating rival Waymo – owned by Google parent Alphabet – to the punch. While Waymo had offered fared driverless rides in Phoenix, Arizona, for some time previously, it had been in quieter suburban areas.
Add your comment