GM's Cruise Sees Another Billion-dollar Investment
General Motors’ self-driving vehicle unit, Cruise, has attracted new investors and an equity infusion of $1.15 billion as it continues work on its commercial fleet of autonomous taxis. The new investment, which effectively brings the operation’s valuation to $19 billion, is primarily fronted by Baltimore-based asset management company T. Rowe Price Associates Inc. and existing partners like SoftBank’s Vision Fund and Honda Motor Co.
“Developing and deploying self-driving vehicles at massive scale is the engineering challenge of our generation,” said Cruise CEO Dan Ammann. “Having deep resources to draw on as we pursue our mission is a critical competitive advantage.”
Considering Cruise has one of the most ambitious timelines of any mainstay automaker, it likely needs all the help that it can get. Last year, we learned of setbacks plaguing the program — a phenomenon not uncommon among companies developing self-driving systems. However, some of the capital funneled into the program is dependent on Cruise hitting proposed target dates — the first of which involves launching a commercial service by the end of this year.
Otherwise, the things have been going well for the company. Sizable investments have helped the firm, which began as a startup with around 40 employees, grow to a workforce over 1,000 strong. It’s also currently expanding is San Francisco offices and intends to lay additional roots in Seattle, hiring hundreds of new engineers. Ultimately, GM leadership sees its autonomous arm doubling in size before year’s end.
[Image: General Motors]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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a rathole stinks no matter which bankster rat runs the joint.
Anyone still selling buggy whips?
Only a billion? Pfft — chump change in Silly Con Valley. A beautiful place where snow never blocks lidar optics, and operating profits are completely optional.
A billion dollars for a Google spy car? Ridiculous.