General Motors is investing $850 million into Cruise to help cover the company’s operational costs after it was forced to shut down its robotaxi service when one of its driverless cars struck a pedestrian. GM chief financial officer Paul Jacobson announced the investment onstage at Deutsche Bank’s Global Auto Industry Conference in New York City today. The money would be used to cover Cruise’s operational costs as it slowly resumes testing its autonomous vehicles in several US cities.
The company issued a voluntary recall of all 950 Cruise vehicles last year to update the software and prevent similar incidents in the future. Several top executives resigned, including co-founders Kyle Vogt and Dan Kan. And a quarter of the company’s staff was laid off. Several GM executives stepped in to right the ship, including general counsel Craig Glidden as Cruise’s co-president, alongside Mo Elshenawy, who will also become chief technology officer.