GM Buys Cruise Automation to Speed up Self-Driving Car Tech Devt

GM Buys Cruise Automation
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General Motors Company (NYSE:GM) decided to acquire Cruise Automation as part of efforts to accelerate furthers its development of self-driving car technology.  The companies did not disclose the financial details of the transaction.

GM is purchasing Cruise Automation because it believes that the startup has a deep software talent and rapid development capability when it comes to autonomous vehicles.

GM Buys Cruise Automation

In a statement, GM President Dan Ammann said, “Fully autonomous vehicles can bring our customers enormous benefits in terms of greater convenience, lower cost and improved safety for their daily mobility needs.”

GM to make further investment in Cruise Automation

Mark Reuss, executive vice president, global product development, purchasing, and supply chain at GM, commented that Cruise Automation has a unique technology advantage that is incomparable in the auto industry.

According to him, the acquisition is beneficial for GM, and they intend to make a significant investment to cultivate further the talent base and capabilities of Cruise Automation.

Separately, Ammann said, “GM intends to use Cruise’s technology and people to accelerate its effort to develop vehicles that can operate without a human driver, potentially as part of ride-sharing fleets “as soon as possible. He added, “We will be committing considerable resources to recruit and grow the capability of the team.”

Cruise Automation will operate as independent unit

Cruise Automation will operate in San Francisco as an independent unit under the Autonomous Vehicle Development team, which was recently created by GM. The team is led by Doug Parks, vice president of autonomous technology and vehicle execution of the automaker.

Kyle Vogt, the founder of Cruise Automation, said, “We are excited to be partnering with GM and believe this is a ground-breaking and necessary step toward rapidly commercializing autonomous vehicle technology.”

GM expected to close the acquisition in the second quarter. The deal is subject to customary closing conditions.

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