General Motors Co GM is reportedly discontinuing its Ultra Cruise system, a successor to its Super Cruise system, to refocus on the older generation of its driver assistance system.
What’s The Scoop: GM has plans to halt its Ultra Cruise program, as per a report by CNBC. This change is attributed to two sources familiar with the matter.
The automaker will now intensify efforts on the further development of Super Cruise instead of maintaining two driver assistance systems, as per the report.
Ultra Cruise, which was set to launch in 2023, will no longer be pursued.
GM did not immediately respond to Benzinga‘s request for comment.
Why It’s Significant: Unveiled in October 2021, Ultra Cruise was presented as a comprehensive driver assistance system using camera, radar, and LiDAR sensors. It set itself apart from Tesla’s full self-driving beta feature by incorporating pre-recorded HD map data in addition to camera input.
Analysts, including Morgan Stanley‘s Adam Jonas, previously viewed the strategic and commercial value of both Super Cruise and Ultra Cruise as positioning GM as an “AI powerhouse” with the potential to significantly boost revenue.
Analysts, including Morgan Stanley‘s Adam Jonas, previously regarded the strategic and commercial value of both Super Cruise and Ultra Cruise as positioning GM as an “AI powerhouse” with the potential to significantly boost revenue.
Media reports initially hinted at Ultra Cruise making its debut on GM’s Cadillac Celestiq this year.
AV Setbacks: GM has recently been facing substantial hurdles in the autonomous driving technology realm. Following an incident in October last year, Cruise, its autonomous vehicle division, suspended all operations in the U.S.
Its co-founder and CEO Kyle Vogt subsequently stepped down and GM announced cost-cutting measures for the unit including layoffs.
In the third quarter, Cruise reported an EBIT-adjusted loss of $732 million, a 47% increase from $497 million a year earlier.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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