According to media reports, General Motors stated that its autonomous driving subsidiary, Cruise, incurred a loss of $442 million in the first quarter, a 21% decrease year-over-year. Earlier, General Motors had announced plans to reduce spending on Cruise.
General Motors CEO Mary Barra mentioned that the company is evaluating how to fund Cruise, including the possibility of accepting more external investments.
General Motors CFO Paul Jacobson revealed that the company expects to invest $1.7 billion in operations for its autonomous driving subsidiary, Cruise, this year. However, this is slightly lower than the approximately $2 billion General Motors had been investing in Cruise in previous years.
Since 2016, General Motors has invested around $8 billion in Cruise. Cruise's leadership had previously pledged to achieve $1 billion in annual revenue by 2025, but the company has yet to turn a profit.
Last year, due to an incident in California that led to the revocation of its autonomous driving permit, General Motors had to suspend Cruise's operations in the United States.
General Motors stated that Cruise has initiated manual testing of its autonomous driving system in Phoenix, Arizona, in April this year to prepare for restarting autonomous driving. Cruise will continue to establish more robust and transparent processes, collaborate with regulatory agencies and local governments, and engage with the public.
It is reported that when calculating bonuses for salaried employees in 2024, General Motors will consider the company's performance in the electric vehicle, software and services, and autonomous driving sectors, including Cruise.
In 2024, 60% of bonuses for General Motors' salaried employees will come from pretax profits and free cash flow, while the remaining 40% will come from the performance of the electric vehicle, software and services, and Cruise sectors.
