GM's Autonomous Vehicle Unit Becomes Cost Conscious Following Robotaxi Ramp Up

General Motors Co GM robotaxi unit Cruise is eyeing cost cuts this year as mounting losses in the autonomous vehicle companies sparked investor concerns.
"We'll continue to look at hardware, software - both in terms of component costs as well as the quantity of components that are on the vehicle - and continue to drive cost out as we move forward," Reuters reports citing Cruise's COO Gil West at a technology conference.
At Cruise, General Motors burned through nearly $2 billion last year.
Fully autonomous vehicles failed to launch as quickly as expected due to cumbersome regulations, safety investigations, and arduous technology.
Last fall, Ford Motor Co F and Volkswagen AG VWAGY shared plans to shutter their Argo AI self-driving unit and focus on driver-assistance technology that provided more immediate returns.
Alphabet Inc's GOOG GOOGL self-driving technology unit, Waymo, has laid off over 8% of its workforce this year.
Cruise, which offers a limited service in San Francisco with a small fleet of Chevrolet Bolt fitted with driverless technology, has accumulated a little over a million driverless miles, West said.
Cruise is also developing a fully autonomous vehicle called Origin from scratch without a steering wheel and with subway-like doors for rideshare and deliveries.
West said Origin was in the final stages of certification and ready for full-scale production.
Most of the barriers to entry, including technological challenges and regulatory clearances, will likely be resolved in 2023, West said.
Price Action: GM shares traded higher by 0.32% at $40.58 premarket on the last check Tuesday.
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