After a series of dismal defeats on the California streets, it looks like General Motors’ latest new technology investment is cruising toward disaster.
Cruise, the U.S. automaking giant’s robotaxi subsidiary, has been mired in controversy since a pedestrian accident in San Francisco forced the California DMV to suspend the company’s operating license.
The robotaxi company has only fallen further into the quicksand since with the resignation of its co-founder and CEO before laying off 24% of its workforce last week.
Despite the enticing attraction of seemingly-promising new technology startups, Cruise’s downward trajectory is proving that corporations may need to pump the brakes on investing heavily in unproven ventures.