GM’s Cruise plans to restart its robotaxi testing in the Bay Area this fall

Cruise, General Motors Co.’s self-driving vehicle division, is set to restart its robotaxi operations in California this fall for the first time since a pedestrian accident led to its license suspension in October.

The testing will be limited, involving a maximum of five vehicles operated by test drivers for development purposes. The cars will be deployed in Sunnyvale and Mountain View, but not in San Francisco, where the company faced regulatory challenges.

It has taken nearly a year for Cruise to return its vehicles to California roads after the incident, which involved a car hitting and dragging a pedestrian. The company also encountered issues with emergency responders and other drivers in the city.

The crisis led to significant leadership changes, including the resignation of founder Kyle Vogt, the dismissal of nine executives, and a 25% workforce reduction. This year, Cruise has begun testing in Phoenix, Dallas, and Houston, aiming to offer fully driverless rides in one of those markets soon.

Initially, GM CEO Mary Barra anticipated that Cruise would generate $1 billion in fares next year and contribute $50 billion in revenue for the automaker by 2030. However, the October accident has been a major setback for a technology GM has dubbed a “moonshot.” Despite cutting costs and scaling back expansion plans, GM remains committed to Cruise, having invested $850 million in June and planning to seek additional funding by early 2025.

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