GM-Backed Cruise's Self-Driving Robo-Taxi Revealed

Cruise, the self-driving car start-up, in which General Motors Company (NYSE: GM) owns a majority state, revealed a prototype of its driverless robo-taxi on Tuesday.

Benzinga · 01/22/2020 11:08

Cruise, the self-driving car start-up, in which General Motors Company (NYSE: GM) owns a majority state, revealed a prototype of its driverless robo-taxi on Tuesday.

What Happened

The robo-taxi called Cruise Origin is a “fully engineered vehicle that’s on its way to production,” and it could be tested in private facilities later this year, said Cruise’s CEO, Dan Ammann.

Cruise will use the vehicle in its planned autonomous ride-sharing service, added Ammann.

The vehicle with no steering wheel or pedals was developed by Japanese manufacturer Honda Motor Company, Ltd. (NYSE: HMC), which also holds a state in Cruise.

The launch of Cruise Origin has been delayed from 2019, and the company is yet to announce a new launch date for the vehicle.

“We’re obviously still working on something that’s never been done before. So the timelines given aren’t completely certain, but we’re moving really quickly,” Ammann told reporters on Tuesday.

Why It Matters

Carmakers are currently in a race to develop new, innovative self-driving vehicles using AI technologies, in an attempt to gain a foothold in the emerging self-driving car market.

But most carmakers, including Cruise, are yet to get a permit from regulators to test their driverless vehicles.

Alphabet Inc’s (NASDAQ: GOOGL) self-driving technology development company Waymo is the only company that received a regulatory green light to test its cars without a driver.

Ammann is still in talks with the National Highway Traffic Safety Administration for permission to deploy self-driving vehicles on the roads.

Price Action

General Motors Company stock fell by 1.71% and closed at $34.99 on Tuesday.

Photo Credit: Courtesy of Cruise Origin