GM Revving Back? Cadillac Maker Reportedly Scraps Ultra Cruise To Double Down On Older Driver Assistance System

General Motors Co GM is reportedly discontinuing its Ultra Cruise system, a successor to its Super Cruise system, to refocus on the older generation of its driver assistance system.

What Happened: GM has plans to put a stop to its Ultra Cruise program, CNBC reported, citing two sources familiar with the matter.

The automaker will now refocus its efforts on the further development of Super Cruise instead of having two driver assistance systems, the report added.

Ultra Cruise was initially slated for a 2023 launch.

A GM spokesperson told Benzinga that the company is “not scaling back its advanced driver assistance (ADAS) programs.”

“We have reallocated our ADAS-focused resources to bring even more capability to Super Cruise under one recognizable consumer brand,” the spokesperson said.

Why It Matters: Introduced in October 2021, Ultra Cruise was positioned as a comprehensive driver assistance system utilizing camera, radar, and LiDAR sensors. Distinguishing itself from Tesla’s full self-driving beta feature, Ultra Cruise incorporated pre-recorded HD map data in addition to camera input.

Analysts, including Morgan Stanley‘s Adam Jonas, previously regarded the strategic and commercial value of both Super Cruise and Ultra Cruise as positioning GM as an “AI powerhouse” with the potential to significantly boost revenue.

Media reports initially hinted at Ultra Cruise making its debut on GM’s Cadillac Celestiq this year.

AV Setbacks: GM has recently been facing considerable hurdles in the autonomous driving technology realm. Following an incident in October last year, Cruise, its autonomous vehicle division, suspended all operations in the U.S.

Its co-founder and CEO Kyle Vogt subsequently stepped down and GM announced cost-cutting measures for the unit including layoffs.

“When it comes to Cruise, GM remains committed to supporting the independent safety reviews and Cruise as they refocus on trust, accountability and transparency,” the spokesperson said.

In the third quarter, Cruise reported an EBIT-adjusted loss of $732 million, a 47% increase from $497 million a year earlier.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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Photo courtesy: GM