General Motors (NYSE:GM) is preparing to relaunch its autonomous robotaxi service with a more focused approach, following a series of public safety incidents that led to a temporary shutdown. President and CTO Mo Elshenawy confirmed the company's plans to resume operations in a new city, which remains undisclosed, and the decision to streamline its workforce at Cruise, the automaker's self-driving unit.
The move comes after Cruise faced a suspension of its service in California last October when it lost its permit due to multiple mishaps, including an incident where a pedestrian was dragged. These events also prompted the resignation of CEO Kyle Vogt amidst ongoing independent investigations into the company's safety practices.
Elshenawy announced that as part of the strategic redirection and in response to regulatory adjustments, there will be layoffs within Cruise's workforce of 3,800 employees. The company is also narrowing its focus on electric Bolt robotaxis and delaying the development of the Origin van project. This pivot aims to align with regulatory environments in potential locations such as Texas or Arizona, known for their autonomous vehicle-friendly regulations.
Despite a 16.3% drop in GM's stock value this year, analysts maintain a Moderate Buy consensus rating on the company's shares, suggesting significant upside potential. For the upcoming robotaxi relaunch, GM will utilize retrofitted Bolt EVs and is considering expansion to cities like Phoenix, Austin, Houston, or Miami where regulations are more conducive to the deployment of autonomous vehicles.
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