GM to Reboot Driverless Car Program with New Focus on Personal Use

General Motors is reviving its autonomous vehicle project, focusing on personal use cars, after shutting down its Cruise business last year due to a pedestrian incident and regulatory crackdown. The company plans to lure back former Cruise employees and hire new staff in Mountain View, California. The first step is developing hands-free, eyes-free driving with a human in the vehicle, with the ultimate goal of creating a car that can drive with no one at the wheel. GM has been running human-driven vehicles to gather data for self-driving technology.

General Motors (GM) is reviving its autonomous vehicle project, with a renewed focus on personal use cars, after shutting down its Cruise business last year due to a pedestrian incident and regulatory crackdown. The company plans to lure back former Cruise employees and hire new staff in Mountain View, California. The first step is developing hands-free, eyes-free driving with a human in the vehicle, with the ultimate goal of creating a car that can drive with no one at the wheel. GM has been running human-driven vehicles to gather data for self-driving technology [2].

GM's Super Cruise technology, which allows hands-free driving on highways, is already available in 23 models, including the Cadillac LYRIQ, Escalade, GMC Hummer EV, and Sierra. The technology uses a combination of cameras, sensors, GPS, and LiDAR-based maps to keep the car centered, manage speed, and maintain a safe distance. GM has booked $4 billion in deferred revenues from software platforms like Super Cruise and OnStar and expects over $200 million in Super Cruise revenues for 2025, with expectations of more than double in 2026 [2].

To support its autonomous vehicle project, GM is also focusing on battery technology. The company will import batteries from China for one of its low-cost electric vehicles as a temporary measure. GM will import batteries from CATL for two years for the second generation of the 100% electric Chevrolet Bolt, until GM and its South Korean partner LG Energy Solution can produce low-cost batteries in the U.S. The new electric Bolt will hit the market in early 2026 and will be produced at GM’s factory in Fairfax, Kansas [1].

GM's stock has increased around 30% over the past year compared to the industry’s gain of 18%. The company trades at a forward price-to-earnings ratio of 5.49, above the industry average, and carries a Value Score of A. GM stock currently carries a Zacks Rank #3 (Hold) [2].

References:
[1] https://autogear.pt/en/general-motors-will-import-batteries-from-china/
[2] https://finance.yahoo.com/news/gms-super-cruise-keeping-competitive-133600341.html