Cruise’s Suspension Marks a Setback for GM CEO Barra’s Vision
- Company halted the autonomous-driving operations this week
- GM has positioned Cruise as a growth driver in future years
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A couple of hours after Chief Executive Officer Mary Barra finished telling Wall Street analysts that the Cruise self-driving unit was an undervalued piece of General Motors Co., California suspended its robotaxi license citing a risk to public safety.
The situation went from bad to worse on Thursday after Cruise said it would cease operations in all four cities where it charges for rides. That sapped what little revenue there was from a business Barra hoped would bring in $1 billion in fares by 2025 and help double GM’s sales to $240 billion in seven years.