Cruise's Setback & AV Test Mile Decline: What Happened?

The End of Cruise as a Robotaxi Company

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The anticipated outcome has materialized: Cruise, in its capacity as a robotaxi service, has ceased operations. General Motors has finalized the acquisition of GM Cruise Holdings LLC, resulting in Cruise becoming a fully integrated subsidiary of GM.

Staff Reductions and Integration

This transition involves a significant workforce reduction of 50%, impacting approximately 1,000 employees. The remaining personnel will be absorbed into GM’s existing structure.

Their focus will shift towards enhancing GM’s advanced driver-assistance system. This integration aims to leverage Cruise’s expertise to improve existing technologies.

Questions Regarding Talent Retention

A key question arises: will GM be successful in retaining the skilled workforce, primarily comprised of engineers? Will this influx of expertise lead to advancements in the Super Cruise system?

There is some uncertainty regarding the compatibility of talent previously dedicated to, and inspired by, Cruise’s former CEO Kyle Vogt, with GM’s corporate environment.

The Passion of Cruise Engineers

Throughout numerous conversations with Cruise engineers, a consistent theme emerged: a strong dedication to the autonomous vehicle vision. These individuals consistently demonstrated a genuine enthusiasm for their work.

They were deeply committed to the mission of achieving full autonomy and willingly invested substantial hours in pursuit of this goal.

Connecting with Former and Current Employees

If you are a current or former Cruise employee, I invite you to share your experiences. I am particularly interested in hearing about the company’s early stages.

Please feel free to contact me at kirsten.korosec@techcrunch.com to discuss your insights.

Recent Developments at Cruise

Further information has been received from contacts within Cruise. A significant portion of this communication concerned upcoming workforce reductions, a topic previously discussed. However, an intriguing detail emerged regarding potential plans for resuming robotaxi services.

Sources indicated that Cruise was prepared to deploy an updated sensor system, known internally as Project Rhino. This retrofit was designed to address the issues stemming from the October 2nd incident, enhancing the vehicle’s perception of its surroundings, particularly beneath the chassis.

The “incident” refers to an event in 2023 where a pedestrian, initially struck by a conventionally driven vehicle, became lodged under and was subsequently dragged by a Cruise robotaxi.

Confidential Information

Do you have information to share? Please reach out to Kirsten Korosec at kirsten.korosec@techcrunch.com, Sean O’Kane at sean.okane@techcrunch.com, or Rebecca Bellan at rebecca.bellan@techcrunch.com.

Alternatively, instructions are available detailing how to contact us securely through encrypted messaging applications or SecureDrop.

Recent Industry Transactions

Several noteworthy transactions occurred within the technology sector this week.

Applied Intuition has completed the acquisition of EpiSys Science Inc. This acquisition brings autonomy software expertise, originally developed for national security applications, under the Applied Intuition umbrella.

EpiSys Science Inc.'s technology supports uncrewed aerial systems, surface warfare, maritime tracking, and command and control systems. Applied Intuition is recognized as a leading provider of autonomous vehicle software and is expanding its presence in the defense industry.

Funding Rounds

GenLogs, a company specializing in freight intelligence software, successfully secured $14.6 million in Series A funding.

Venrock and HOF Capital spearheaded the funding round, with participation from Steel Atlas, AutoTech Ventures, Venture 53, TitletownTech, Plug and Play Ventures, and Heartland Ventures.

Presto, a startup focused on streamlining EV charging payments, has raised $15 million in a seed funding round.

Union Square Ventures led the investment, with additional contributions from Congruent Ventures, Jetstream, and Powerhouse Ventures. Presto aims to provide a comprehensive payment solution for the electric vehicle charging ecosystem.

Industry Updates and Key Developments

Advanced Driver-Assistance Systems (ADAS)

Last week’s newsletter covered Tesla’s financial results. However, an article by Sean O’Kane highlights the numerous commitments made by Elon Musk regarding his Full Self-Driving software. It also notes his recent acknowledgement that certain vehicles will require hardware upgrades.

Autonomous Vehicle Technology

Data released by the California Department of Motor Vehicles indicates a 50% decrease in autonomous vehicle testing mileage. The suspension of Cruise operations is a contributing factor. However, other influences are also present.

Waabi and Volvo Autonomous Solutions are collaborating on the joint development and deployment of autonomous trucking solutions. It’s worth noting that Volvo also maintains a partnership with Aurora.

Waymo is now integrated within the Uber application in Austin, Texas. Currently, this integration doesn’t involve Waymo vehicles providing rides. This functionality is expected to become available shortly.

Electric Vehicles, Charging Infrastructure, and Battery Technology

The Chicago Auto Show is currently taking place. While many vehicles showcased are mild hybrids or traditional internal combustion engine models – such as the Subaru Forester Hybrid – several EVs were also present.

Stellantis unveiled the all-electric 2025 Jeep Wagoneer S Limited trim. This model boasts a starting price of $66,995 and an estimated driving range of 294 miles.

Ford’s recent earnings report revealed a loss of approximately $5 billion for its EV division in 2024. CEO Jim Farley’s statements concerning tariffs also garnered significant attention.

Scout Motors, a Volkswagen subsidiary focused on all-electric and range-extended electric trucks and SUVs, is facing a lawsuit. The suit was filed by a coalition of VW and Audi dealerships in Florida, contesting Scout Motors’ direct-to-consumer sales strategy.

Ride-Hailing and the Gig Economy

Lyft is partnering with AI company Anthropic to develop an AI assistant. This assistant will manage the initial stages of customer service interactions for both riders and drivers.

Space Exploration and the Future of Aviation

An interesting article profiles Circularity Fuels, a startup that produces diamonds as a byproduct of its process to create e-fuels. These e-fuels are intended for use in powering jet aircraft.

Recent Vehicle Evaluations

This week’s focus is on the experiences of TechCrunch journalist Rebecca Bellan with a 2024 Kia Niro. It’s important to note the accompanying image depicts a 2025 model year vehicle.

A 2024 Kia Niro was rented for a weekend excursion approximately two hours north of New York City.

The vehicle proved to be a pleasant and responsive SUV, though challenges were encountered in two key areas relevant to longer journeys: winter battery performance and the accessibility of the volume controls.

After roughly 90 minutes of driving, covering around 70 miles, the battery charge diminished from full to 50%.

This triggered concerns regarding the availability of charging stations in the more rural areas of Connecticut. A single EVgo charger was eventually located within the parking area of a Planet Fitness facility. Despite being advertised as a 50 kW charger, it delivered power at a significantly slower rate of only 17 kW.

The absence of a conventional volume knob or button was also notable. A common frustration with modern, software-centric vehicles is the increasing reliance on touchscreens instead of physical controls for frequently used functions.

Adjusting the audio volume proved difficult, requiring the use of controls on the steering wheel. Neither the driver nor any passengers could immediately determine the correct method for volume adjustment.

A quick online search for “Kia Niro volume” revealed a Reddit post detailing the same issue. The solution involves first tapping the button above the orange fan to exit climate control mode, then utilizing the left temperature knob to control the volume. This process is rather unconventional.

What is “This week’s wheels”? It provides an opportunity to gain insights into the various transportation options currently under evaluation, encompassing electric and hybrid cars, e-bikes, and even autonomous vehicle experiences.