Honda Ends Financial Support for GM-Cruise Autonomous Taxi Project in Japan
Honda Motor Co. has officially halted funding for its joint robotaxi venture with General Motors (GM) and Cruise, following GM’s strategic shift away from commercial autonomous vehicle (AV) services. The decision comes as GM discontinues Cruise’s robotaxi operations to focus on personal AV development, as reported by Nikkei Asia.
Key Developments in the GM-Cruise-Honda Partnership
GM’s Strategic Pivot:
- GM announced it would cease funding Cruise as a standalone robotaxi entity on December 11, 2024.
- Cruise will now be integrated into GM’s broader autonomous vehicle division, shifting focus to personal AVs rather than commercial ride-hailing services.
Ownership Restructuring:
- While GM currently holds a 90% stake in Cruise, Honda and other investors (including T. Rowe Price and Microsoft) own minority shares.
- GM plans to repurchase shares from minority stakeholders, increasing its ownership to over 97%.
Timeline of the Failed Robotaxi Initiative
- October 2023: The trio announced ambitious plans to launch a Tokyo-based robotaxi service by 2026 using Cruise’s custom-built Origin vehicles.
- October 2023: Cruise lost its California operating permits after regulatory missteps following a safety incident, grounding its U.S. fleet.
- January 2024: Honda’s CEO expressed skepticism about the 2026 timeline, suggesting AVs might debut closer to 2030.
- July 2024: Cruise officially abandoned production of the Origin robotaxi, taking a $583 million charge.
What This Means for the AV Industry
The collapse of this partnership underscores the challenges facing commercial robotaxi deployments, particularly in stringent regulatory environments. Honda’s withdrawal reflects broader industry caution as automakers reassess the feasibility and profitability of large-scale autonomous ride-hailing services.
For further details on GM’s AV strategy, visit TechCrunch.
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