General Motors Co. (NYSE: GM) announced Friday that it is acquiring a Silicon Valley startup that is developing technology for self-driving (autonomous) vehicles. Cruise Automation developed and launched a retrofit kit for a couple of Audi models, but the high cost ($10,000 according to Re/code) and clunky, rooftop bolt-on device had little chance to become a marketplace winner.
GM has recently invested $500 million in ride-sharing company Lyft and acquired a ride-hailing company named Sidecar. The automaker clearly is serious about the future of automobiles, whether from a ride-sharing or a self-driving perspective. In a recent survey by the editors at Kelley Blue Book, ride-sharing and car-sharing have yet to establish a real grip on U.S. consumers, but one takeaway from the survey is that younger consumers are more likely to have used and liked both ride-sharing (Uber and Lyft) and car-sharing (Zipcar).
GM launched its own car-sharing program called Maven in January. The program kicked off in Ann Arbor, Mich., with 21 GM vehicles available throughout the city of about 100,000 residents.
Cruise Automation’s autonomous technology was installed on a Nissan Leaf that collided with a parked Toyota Prius after the driver took manual control of the Leaf. Cruise’s CEO appeared to hold the driver responsible, saying he “made a mistake.”
Cruise will operate as an independent unit within GM’s newly formed Autonomous Vehicle Development team and will continue to work from San Francisco. GM’s executive vice president of global product development, purchasing and supply chain said:
Cruise provides our company with a unique technology advantage that is unmatched in our industry. We intend to invest significantly to further grow the talent base and capabilities already established by the Cruise team.
Ford Motor Co. (NYSE: F) announced in January that it plans to triple its fleet of autonomous research vehicles this year and accelerate development and testing of its virtual driver software using technology sourced from Velodyne LIDAR.
No terms were supplied on GM’s acquisition of Cruise Automation. The deal is expected close in the second quarter.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
