Cruise Autonomous Vehicle Development refocuses on modified Chevrolet Bolt

General Motors (GM) has announced a significant shift in its autonomous vehicle strategy, with its self-driving unit Cruise redirecting its development efforts away from the futuristic Origin vehicle to focus on a next-generation Chevrolet Bolt. This strategic pivot marks a notable change in the company's approach to self-driving technology and reflects the complex regulatory and economic landscape surrounding autonomous vehicles.

The Origin, a vehicle designed without traditional human controls such as a steering wheel or pedals, had been at the forefront of Cruise's ambitious plans for the future of transportation. In 2022, GM filed a petition with the National Highway Traffic Safety Administration (NHTSA) seeking permission to deploy up to 2,500 Origin vehicles annually. However, the agency has yet to act on this request, contributing to the uncertainty surrounding the project.

A GM spokesperson elaborated on the decision, stating, "This shift creates a more cost-effective and scalable option for pursuing an autonomous future faster, while avoiding the uncertain path to regulatory compliance in the U.S. that could impede scaling of the Origin." The move underscores the challenges faced by automakers in navigating the evolving regulatory landscape for fully autonomous vehicles.

The decision comes in the wake of a series of setbacks for Cruise. The unit faces multiple investigations, including probes by NHTSA, the Justice Department, and the Securities and Exchange Commission, following an October incident where one of its robotaxis struck and dragged a pedestrian for 20 feet. This accident led to intense scrutiny and resulted in the California Department of Motor Vehicles revoking Cruise's permit to operate driverless vehicles in the state.

GM had previously explored similar territory in 2018 when it petitioned NHTSA to allow the use of a Chevrolet Bolt-based car without steering wheels or brake pedals on U.S. roads. The petition was withdrawn in 2020 after the agency took no action, highlighting the persistent regulatory hurdles in the autonomous vehicle sector.

Despite these challenges, Cruise has shown signs of adapting and moving forward. GM CEO Mary Barra noted that Cruise has resumed testing of its robotaxis with human safety drivers in Phoenix, Houston, and Dallas. The company has also appointed a new CEO in June, signalling a fresh approach to its operations and development strategy.

Barra emphasised the financial implications of the shift, stating that "per-unit costs will be much lower, which will help Cruise optimise its resources." This focus on cost-effectiveness is crucial, given that Cruise has incurred losses exceeding USD 8 billion since 2017. In January, GM announced a reduction in spending at Cruise by approximately USD 1 billion, further underlining the need for a more sustainable approach to autonomous vehicle development.

The decision to focus on a modified Chevrolet Bolt represents a pragmatic approach to autonomous vehicle development. By building upon an existing platform, GM and Cruise can potentially accelerate their progress while navigating the complex regulatory environment more effectively. This strategy may also allow for easier integration of autonomous technology into vehicles that still maintain traditional controls, potentially easing the path to market acceptance and regulatory approval.