# GM’s Cruise to focus on cost cuts as it ramps up robotaxis Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-07 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: GM's Cruise Focuses on Cutting Costs for Robotaxi Unit Meta Description: General Motors Co's robotaxi unit Cruise is prioritising cost reduction this year, amid mounting losses and concerns in the autonomous vehicle sector. URL: https://financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxishtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-07t025224z3lynxmpej2601vrtroptp4gm-results-1736814369112-compressed.jpg) By Abhirup Roy SAN FRANCISCO (Reuters) – General Motors Co’s robotaxi unit Cruise is focusing on cutting costs this year, a top executive said on Monday, as mounting losses in the autonomous vehicle companies have sparked investor concerns and forced some to shut shop. “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,” Cruise’s chief operating officer Gil West said at a technology conference. At Cruise, General [Motors burned through nearly $2 billion last year](https://www.financedigest.com/2020-the-paradoxical-year-that-has-reshaped-the-future-of-motor-insurance-and-related-sectors.html "2020: The paradoxical year that has reshaped the future of motor insurance and related sectors"). West did not [give details of spending](https://www.financedigest.com/how-giving-insights-into-card-spend-can-help-organisations-to-manage-their-business.html "How giving insights into card spend can help organisations to manage their business") estimates this year. Fully autonomous vehicles have not rolled out as fast as originally expected due mostly to cumbersome regulations, [safety investigations and arduous technology](https://www.financedigest.com/how-festival-organisers-are-using-technology-to-maximise-safety.html "How festival organisers are using technology to maximise safety"). Ford Motor Co and Volkswagen AG last [fall announced they would shutter their Argo AI self-driving unit and focus](https://www.financedigest.com/stocks-fall-bond-yields-rise-as-focus-shifts-to-fed-rate-outlook.html "Stocks fall, bond yields rise as focus shifts to Fed, rate outlook") on driver-assistance technology that provided more immediate returns. [Cruise’s rival and Alphabet Inc’s self-driving](https://www.financedigest.com/upset-by-high-prices-gms-cruise-develops-its-own-chips-for-self-driving-cars.html "Upset by high prices, GM’s Cruise develops its own chips for self-driving cars") technology unit, Waymo, has this year laid off over 8% of its workforce. Cruise, which offers a limited [service in San Francisco with a small fleet of Chevrolet Bolt fitted with driverless technology](https://www.financedigest.com/financial-services-technology-development-in-2023.html "Financial Services technology development in 2023"), has accumulated a little over a million driverless miles, West said. The company is also [developing a fully autonomous vehicle called Origin from scratch without a steering](https://www.financedigest.com/marine-base-steering-gear-market-notable-developments-geographical-outlook.html "Marine Base Steering Gear Market: Notable Developments & Geographical Outlook") 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](https://www.financedigest.com/exclusive-volvo-readies-ev-blitz-in-biggest-product-revamp-under-geely.html "Exclusive: Volvo readies EV blitz in biggest product revamp under Geely"), calling it a “big unlock” for the company this year. Most of the barriers to entry, including technological challenges and regulatory clearances, are expected to be resolved in 2023, helping the company expand and [grow quickly](https://www.financedigest.com/4-strategies-for-quickly-growing-your-startup.html "4 Strategies for Quickly Growing Your Startup"), West said. “All that means more rides, more deliveries … and then we start to [increase our revenue](https://www.financedigest.com/russias-gazprom-expects-increase-in-2022-revenue.html "Russia’s Gazprom expects increase in 2022 revenue") flywheel,” West said. This is a really pivotal year for us that will really transform not just Cruise but the whole perception of [autonomous vehicles.”](https://www.financedigest.com/adoption-of-autonomous-underwater-vehicles-market-to-surge-during-the-forecast-period-owing-to-increased-consumer-demand.html "Adoption of Autonomous Underwater Vehicles Market to Surge During the Forecast Period Owing to Increased Consumer Demand") [(Reporting by Abhirup Roy](https://www.financedigest.com/lumen-releases-report-from-pwc-on-the-roi-of-attention-technology.html "Lumen Releases Report from PwC on the ROI of Attention Technology") in San Francisco; Editing by Stephen Coates) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---