General Motors to cut costs for Cruise robotaxi division by $1 billion in 2014

General Motors has announced its intention to cut costs for the Cruise robotaxi division by about $1 billion in 2014, Reuters reports.

GM CEO Mary Barra explained that since previous plans to expand Cruise taxis to 20 cities are now on hold, GM does not need to spend money on vehicles and operating personnel.

At the same time, she emphasized that the company remains committed to the self-driving project. According to her, the automaker will “refocus and relaunch Cruise.” The corresponding schedule is planned to be announced soon.

Last October, an incident occurred in San Francisco when a human-driven car hit a woman and fled the scene. After that, the Cruise robot taxi also ran over the victim and dragged her a few meters behind it.

After that, the California authorities revoked Cruise’s license, and the company decided to stop production of the special autonomous vehicle without a steering wheel and pedals Origin. Amid these events, resignations began in the company. For example, CEO Kyle Vogt left his post.