General Motors (NYSE:GM) announced Tuesday that the Detroit automaker is scaling back spending on its self-driving unit, Cruise following an accident involving one of their vehicles last month.
In October, a driverless cab operated by Cruise failed to halt in time to avoid hitting a pedestrian who had already been struck by a hit-and-run driver. This incident raised significant safety concerns regarding the use of robotaxis.
In November, Cruise took the decision to halt all supervised and manual car trips across the United States. Additionally, the company expanded its safety review of its robotaxis, leading to internal confusion.
This situation compelled CEO Kyle Vogt and Chief Product Officer Daniel Kan to step down from their positions.
GM’s robotaxi unit recently announced plans to reintroduce its services in an unspecified city initially, followed by expansion to other locations.
The company intends to concentrate on its Cruise autonomous vehicles based on the Bolt in the immediate future.
Shares of GM are down 0.25% in pre-market trading Tuesday morning.