Honda has decided to end its involvement in a robotaxi joint venture with General Motors (GM) and Cruise in Japan. The move comes as GM shifts its focus away from Cruise’s robotaxi ambitions to prioritize personal autonomous vehicle development, according to a report by The Nikkei.
GM announced on Tuesday that it would cease funding for Cruise, which it owns 90%, and integrate the unit into its broader autonomous vehicle strategy. As part of this decision, GM plans to repurchase shares from minority stakeholders, including Honda, T. Rowe Price, and Microsoft, to increase its ownership stake to over 97%.
The partnership between Honda, GM, and Cruise initially aimed to introduce a robotaxi service in Tokyo by 2026, leveraging Cruise’s custom-built robotaxi model, The Origin. However, the venture faced significant setbacks. Shortly after the October 2023 announcement, Cruise encountered regulatory hurdles in California, including the suspension of its operating permits and grounding of its fleet following safety concerns.
Honda’s CEO had earlier projected that the company would roll out autonomous vehicles closer to the decade’s end. The timeline appears more aligned with Honda’s current strategy as Cruise abandoned its plans to produce the Origin robotaxi in mid-2024.
This development marks a pivot in Honda’s and GM’s autonomous vehicle strategies, with Honda steering away from robotaxi ventures and GM consolidating its efforts to develop personal AVs under one roof.
Featured image courtesy of TechCrunch
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