General Motors shares opened slightly higher on Wednesday after the automaker announced it would halt funding for its Cruise robotaxi program to focus on integrating autonomous technology into personal vehicles.
GM to Wind Down Robotaxi Operations Once Championed by CEO Barra
GM's decision to divest from Cruise comes as other tech giants forge ahead with robotaxi plans.
However, GM's move suggests that billions in funding weren't enough in a still-developing part of the industry that has met with several setbacks and skepticism from wary drivers.
GM made this decision to refocus our strategy because we believe in the importance of driver assistance and autonomous driving technology in our vehicles,GM's CEO Mary Barra said on a call with media and analysts on Tuesday
We're always looking to drive capital efficiency, and that's when we look at the amount of money to deploy a robotaxi business and then to maintain that business and grow it,Barra reportedly said on the call