GM to Spend $2B on Cruise AV Subsidiary in 2022
April 29, 2022—General Motors is expecting to spend around $2 billion this year on Cruise, its autonomous vehicle subsidiary.
GM CFO Paul Jacobson during the company's first-quarter earnings call didn't provide extensive information on what the $2 billion will be used for. A report from TechCrunch says Cruise plans to begin development of the Origin AV next year, which they say could draw "a good chunk of that funding."
“We do believe that this is going to be highly disruptive, both in the long term for personal car ownership and the short term for ride-hailing type businesses based on early customer feedback," Cruise CEO Kyle Vogt said. "Right now we’re maniacally focused on making sure that we delight our early customers and build the foundation for a really strong business down the road.”
Per the report, GM has said in the past it expects Cruise to pull $50 billion in revenue every year by the end of the decade.
Last month, GM bought out SoftBank Vision Fund 1 of its stakes in Cruise, bringing General Motors to about 80 percent ownership of the AV startup.