Cruise had previously banned the company’s self-driving vehicles from driving on public roads after an accident on October 2 in which one of its self-driving taxis dragged a pedestrian.

“We need to take steps to improve our safety metrics and rebuild trust, and our strategy is to re-launch in a city and prove our performance there before expanding,” the company said.

Cruise said the strategic shift will result in a reduction in its headcount “primarily in non-engineering positions.” It also said it would provide more details in mid-December.

The department said it will focus on Bolt-based Cruise AVs in the short term, while its long-term strategy revolves around the Origin, a vehicle without a steering wheel or other operations by a human driver.

Attached is the incident:

 In August this year, ten Cruise Robotaxi vehicles suddenly stalled on the road, causing a traffic jam. A few days later, a Robotaxi crashed into a road construction area and got stuck in the wet concrete; another Robotaxi hit a fire truck at an intersection, causing its passengers to be sent to the hospital.

 The California Department of Motor Vehicles announced on October 25 that Cruise's self-driving cars pose an "unreasonable risk" to public safety and "fail to meet standards for on-road operations."

 Cruise has suspended all public operations of its self-driving cars and will issue a recall for 950 vehicles.

 Cruise is facing multiple federal investigations into the safety of its vehicles, including two cases in which its self-driving cars failed to yield to pedestrians on sidewalks.

 On November 20, Cruise co-founder and CEO Kyle Vogt announced his resignation.

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According to documents from the National Highway Traffic Safety Administration (NHTSA), the collision detection subsystem of the Autonomous Driving System (ADS) software of these cars may react inappropriately after a collision.

Cruise said the recall involves a situation where the software could cause a car to try to pull over instead of staying stationary after a collision, “which is not an ideal response after a collision.” The company is currently looking for a chief executive Selection of security officers.

The company estimates that before the software update, the average car would be involved in a similar collision every 10 million to 100 million miles driven, with the potential for serious injury or death.

It was previously reported that Cruise announced late last month that it would suspend all self-driving car operations in the public domain, a move that effectively terminated the company’s self-driving taxi business throughout California and Miami.

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Cruise is a subsidiary founded in 2013 to research autonomous driving solutions and was acquired by General Motors in 2016. The company is headquartered in San Francisco, California, and can be said to be one of the strongest autonomous driving design startups.

According to reports, the three parties plan to establish a joint venture in the first half of 2024, subject to regulatory approval and are expected to provide driverless taxi services in downtown Tokyo, Japan, in early 2026.

The service will be provided through Cruise Origin, which is jointly developed by the three parties. Cruise Origin is a 6-passenger vehicle designed specifically for driverless ride-hailing services that will pick up passengers at designated locations and deliver them to their destinations entirely on autonomous driving.

According to reports, the service will start with a few dozen Cruise Origins and then expand to a fleet of 500 Cruise Origins. The three companies plan to later expand services beyond central Tokyo.

It is worth mentioning that Cruise Origin is scheduled to be exhibited in Japan for the first time at the Japan Mobility Show 2023, which will be held from October 28 to November 5, 2023, at the Tokyo Big Sight.

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“We’re going to continue to look at the hardware and the software, both the cost of the parts and the number of parts on the vehicle, and we’ll continue to drive down costs as we go,” Cruise Chief Operating Officer Gil West said at a tech conference.

General Motors burned nearly $2 billion on the Cruise business last year (Currently about 13.92 billion CNY), but Cruise did not disclose details of this year’s spending estimates.

Fully autonomous vehicles have not rolled out as quickly as initially expected due to onerous regulations, safety investigations and daunting technology. Ford Motor Co. and Volkswagen AG announced last fall that they were shutting down their Argo AI self-driving division to focus on driver-assistance technologies that offer more immediate payoffs. Cruise rival Waymo, Alphabet’s self-driving technology unit, has laid off more than 8% of its workforce this year.

West noted that Cruise offers limited service in San Francisco, and that its fleet of small Chevrolet Bolts equipped with self-driving technology have racked up more than 1 million miles driven without a driver. The company is also developing a fully self-driving car from the ground up, called Origin, with no steering wheel and just subway-like doors for ride-sharing and delivery.

Origin is in the final stages of certification and ready for full production, according to West, who called it a “big unlock” for the company this year. Most of the barriers to entry, including technical challenges and regulatory clearances, are expected to be resolved by 2023, helping the company expand and grow quickly, West said.

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Cruise has worked hard to transform its self-driving technology from a long-term research project into a profitable business. But the market signals are not good, as investors are reducing their bets on technology risks and reassessing the specifics of large-scale deployments of self-driving vehicles on public roads, driven by economic conditions such as global inflation.

So far, shares of self-driving car technology company Aurora Innovation Inc (AUR.O) have fallen 80 percent. Automakers, including Ford Motor Co (F.N), have scaled back investments in their self-driving car units or sought partners to share costs.

Cruise losses have reached $900 million in the first half of 2022, compared with losses of $600 million in the same period last year and before rides were charged. GM executives said that the main reason for the much higher losses is that, after shelving the IPO plan, the company added wages to retain employees, resulting in higher payroll costs.

Chief Executive Officer Mary Barra said Tuesday she remains bullish on Cruise and reiterated her optimistic forecast that the Cruise unit could make $50 billion a year from self-driving car services and technology by 2030.

But whether it can turn around its losses depends on factors beyond GM’s control, such as winning approval from California regulators to significantly extend Cruise’s operating hours and expanding its self-driving cab coverage area.

Cruise applied to U.S. auto safety regulators in February for a waiver to deploy 2,500 self-driving cars without human control systems such as steering wheels and brake pedals. The National Highway Traffic Safety Administration (NHTSA) published the application last week and opened it for public comment for 30 days.

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However, Cruise said in a statement Thursday that the company has provided some routine information to the NHTSA, but that it has not opened a formal investigation of Cruise over this or any other incident.

Cruise said in an emailed statement Thursday that the NHTSA has not opened a formal investigation into this or any other incident against Cruise, and that an office at the agency has collected some routine information provided by Cruise.

The NHTSA will investigate a crash last month in which a car crashed into a self-driving car developed by Cruise, CNBC reported Thursday. According to a report filed by Todd Brugger, vice president of global marketing for Cruise, a Toyota Prius was traveling 40 mph in a 20 mph speed limit when it struck the Cruise car, the report said.

The Cruise car was in autopilot mode at the time of the accident, according to the report.

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