General Motors (GM) held its 2023 earnings call on Tuesday morning, and in it, the automaker detailed its plans to cut spending on the self-driving unit Cruise after one of the company’s robotaxis struck a pedestrian last October.
In its Q4 2023 and full-year 2023 financial results shared on Tuesday, GM said it lost just almost $2.7 billion before taxes from Cruise, spending about $1.9 billion in cash during the same year. In 2024, however, GM said it’s expecting to shave about $1 billion off of Cruise spending, as it works to “refocus and relaunch” the self-driving startup.
“At Cruise, we are committed to earning back the trust of regulators and the public through our commitments and our actions,” wrote GM CEO Mary Barra in the automaker’s letter to shareholders. “Last week we released the results of the third-party reviews and we’ve already begun to implement significant changes because of these reviews.”
Although Cruise is facing both federal and state investigations into its technology, GM hired legal firm Quinn Emanuel to evaluate the startup’s response to an October accident in which one of its robotaxis dragged and pinned a pedestrian who had been struck by another vehicle with a human driver.
The legal firm shared its results from the investigation last week, noting that internet connectivity may have hampered Cruise’s ability to transmit video to regulators. The findings followed claims from the California Department of Motor Vehicles (DMV) saying that Cruise “omitted” and “misrepresented” certain details in its reports to regulators.
Cruise is set to appear in a hearing before the California Public Utilities Commission (CPUC) on February 6.
Along with cutting its funding for Cruise, GM predicted capital spending between $10.5 billion to $11.5 billion in 2024.
Although the automaker is tempering shareholder expectations on electric vehicle (EV) deliveries this year, the company is still aiming to launch six new EVs, three from the Chevrolet suite, including the Blazer EV, the Silverado EV, the Equinox EV, along with the Cadillac Escalade IQ and Celestiq EV, and finally the GMC Sierra EV.
You can listen to the audio replay of the earnings webcast here on GM’s Investor Relations page, or view the company’s earnings call presentation deck here.
GM-Honda to start hydrogen fuel cell commercial production in MI
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
