Did General Motors Limit Its Future By Walking Away From Cruise?
The auto industry is facing a strenuous "hangover" as it wraps up 2024, after experiencing a significant surge during the pandemic period.
in the future?
Automakers in the near future, decades and centuries to come, will they simply produce and sell private cars, or will they play even greater roles? Looking at a long-term perspective, perhaps full automation may bring about self-driving pods or even flying vehicles. If that happens, I fear it will be after my time. Who will create these advanced vehicles, paving the way into that more advanced era? For now, General Motors battles with present-day challenges, not the least being the mixed reaction to its decision to put the brakes on its autonomous taxi venture.
Your morning briefing of transportation and technology news is ready. Additionally, we'll look at another important topic - the current state of the auto industry is experiencing challenges. Let's dive into the details.
Automotive giant, General Motors, has managed to cut 30% of its costs with Cruise's self-driving technology. However, despite the significant reduction in expenses, Cruise's pace of expansion has been put on hold.
Chevy Bolt Powered by GM Case Self-Driving Technology Stranded in San Francisco (Source: Tesla Owners Silicon Valley/Twitter)
I stand by that decision because transforming an established automaker into a major seller of electric vehicles is an impressive feat, especially considering the challenges faced by many other companies in this field. (More on that later.) Our award process has been in progress for months and wasn't influenced by a sudden change in the news.
Barra's announcement to stop robotaxi operations at Cruise and transferring its team and technology to passenger cars has sparked a mixed reaction.
It's no surprise to me that they had to find a way to cut costs somehow.
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A key component of the plan is for GM's innovation division to discover trillions of dollars in new market opportunities, which include electric commercial vehicles, auto insurance, military defense, autonomous vehicles, and also the potential for "flying cars" or urban air mobility in the long run.
Although General Motors yet to reveal how much earnings the initiative has generated, Mary Barra, after the suspension of its self-driving ride-hailing service, has signaled that the company's expansion focus has shifted as part of a broader industry trend to conserve capital. Companies like GM are now concentrating on their core businesses and related business opportunities, including software, electric vehicles and "personal autonomous vehicles".
GM was previously very optimistic about its driverless ride-hailing service. Executives said just a short time ago that it could become an $8 trillion market opportunity.
GM is giving up on its US$11 billion venture in Cruise, a robotaxi start-up it acquired in 2016, and merging the business into the company, effectively ending the project and affecting 2,300 workers.
Ten years ago, investors and financial analysts on Wall Street were more focused on long-term potential and adopted the approach of being like Tesla; however, nowadays, the main emphasis is on achieving quick returns. So this aspect is quite fascinating:
Credih kepada GM, Bursa Saham Wall Street, yang sebelumnya memujuk untuk usaha pertumbuhan, mengikuti keputusan untuk menamatkan ambisi pemandu robot untuk Cruise. Saham syarikat tersebut awalnya lebih tinggi, sebelum berakhir minggu ini sama seperti ketika pengumuman itu dikeluarkan.
Ford Malaysia equally, like other companies, has rapidly shifted from focusing on growth efforts to excite Wall Street, including generating RM1.2 trillion in new businesses by 2030, to refocusing its efforts on its fundamental business to achieve profits amid economic and recessional concerns.
It's even more fascinating when you take into consideration that Tesla, whose own electric vehicle sales have been seeing a decline in market share, mainly at the expense of GM, still bases most of its significant valuation on the ambitious goal of becoming a fully autonomous vehicle manufacturer.
So, investors are pushing for General Motors to focus solely on building cars and trucks, while expecting Tesla to lead the way in the development of self-driving car technology, is that a fair summary?
That contradicts the "we are a tech company" image many automakers have cultivated over the years. If you're not at the forefront of technological innovation, you're perceived as a slow-to-evolve company with meager profits, high expenses, and inevitable competition with established giants like Volkswagen and Nissan for market share. Most car manufacturers dreaded this scenario. However, this approach hasn't been working out for many of them, including General Motors.
General Motors (GM)'s efforts to expand its business through trendy sectors such as ride-hailing subsidies in "mobility" ventures have seen little success since it began investing in them in 2016.
The automaker earlier this year reabsorbed its BrightDrop EV commercial vans into Chevrolet due to lacklustre sales.
Actually, on this "personal autonomy" issue, I truly believe Super Cruise is fantastic right now, and among all the automated driving assistance systems (ADAS) I've used, it's the only one I can confidently rely on.
The entire sector is currently grappling with the challenges of moving forward while also ensuring its immediate financial stability. I'm envious of anyone who can find a solution to this ongoing dilemma.
The Wake-Up Call After the Celebration Winds Down
GM actually had a better year in 2024 compared to many despite its EV sales, overall profits, and strategic forecasts which were favourable. Similarly, I believe Hyundai Motor Group and a couple of other companys may also fare better. However, let me make one thing clear: the automotive industry experienced a particularly challenging year despite varying levels of severity globally. It could be said that 2024 was one of the most difficult years for the industry since the lead-up to the Great Recession.
There's a feeling of despair right now, particularly when viewed in contrast to the extraordinary growth the car industry experienced during the pandemic.
Nissan, a Japanese car manufacturer, is dismissing 9,000 workers. Volkswagen is thinking of shuttering its factories in Germany for the very first time. The head of Stellantis, a US and European car maker that owns Jeep, Peugeot, Fiat and other well-known brands, has stepped down after their sales plummeted significantly. Even high-end brands such as BMW and Mercedes-Benz are facing difficulties.
Each car manufacturer faces its own set of challenges, but there are several common issues. These include the difficulties in adopting cutting-edge technology which is expensive, the political instability in different regions, the rise of protectionism, and the emergence of a growing group of influential Chinese carmakers. The numerous problems raise concerns about the survival of companies that create a significant number of jobs in many countries in the West and Asia.
Many of these issues have been evident for a long time but were less acute during the pandemic, causing some car manufacturers to become complacent. However, when shortages of semiconductors and other essential components hindered production and constrained inventory, carmakers found it convenient to hike prices.
That particular era has come to an end and the industry has returned to its normal state prior to the pandemic.
Saya agak hairan tentang keraguan ini.
Terdapat satu lagi melihat untuk dalam kenderaan elektromagnet (EV) yang sangat penting.
The automotive sector is experiencing a sharp decline in long-term demand in Europe, where buyer growth continues to falter, and China, where established brands are struggling to keep pace with local upstarts. (And even China's domestic market has its own ceilings.)
Latin : Pada awal inovasinya di ruang EV dan pampasan semakin merosot di seluruh dunia. Malah jenama mewah juga bermasalah disebabkan masalah yang sama. Dan Presiden Amerika new, Donald Trump, yang suka mengancam untuk menghancurkan pampasan EV juga mendatangkan ancamanpositories ribuan jutaan dolar yang telah dirancang untuk invest.
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A 90% Chance: The Fallowng-out Between the Fuel Industry and California Looms Large
has real power.
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The US Supreme Court perintah on Friday to perikses a bid oleh producer of petroleum to challenge standard penggunaan California bagi kenderaan pembakaran minyak serta kenderaan elektrik di bawah undang-undang terhadap pencemaran udara mengikut undang-undang kebangsaan dalam kes besar yang menguji kuasa negeri yang di pimpin oleh Parti Demokrat untuk menghadapi gas-gas rumah hijau.
Perkara berlainan pendapat ini terbit dari permohonan rayuan oleh sebuah sekutuan Valero Energy dan kumpulan industri pengangkutan minyak mengenai keputusan mahkamah rendah yang menolak cabaran mereka ke atas putusan pentadbiran presiden Amerika Syarikat, Joe Biden, yang memberikan kebenaran kepada California untuk menetapkan peraturannya sendiri mengenai piawaian aircraft kenderaan.
The high court will focus on a preliminary matter: determining whether fuel producers have the legal right to contest the EPA's waiver.
This matter will not be brought to court until next spring, but it is an issue we will be closely monitoring. The oil companies' stance is that, in essence, California's exemption oversteps federal authority and also causes them economic harm:
As per the legal requirements, they believed they were eligible to be in court. In their view, by common sense, car manufacturers would have produced fewer electric vehicles and more petrol-powered cars if the exemption had been abolished, subsequently impacting the amount of fuel sold in the market.
This current disagreement originated from a 2019 move by the Trump administration to withdraw the state's powers. Three years later, with President Biden in office, the Environmental Protection Agency (EPA) renewed the state's jurisdiction."
Valero's Diamond Alternative Energy dan kumpulan-kumpulan berkaitan telah menentang kebatalan pindaan California, berpendapat bahawa keputusannya terlampaui kuasa EPA di bawah Akta Hendes Air Bersih dan menyebabkan kerosakan kepada peruntukan mereka ketika mengurangkan permintaan untuk bahan bakar cecair.
Bagi mereka ini, apa yang dibayangkan adalah konsep pembolehubah kecekapan:tanggung
dosa-tertubuh Patterson dalam pengetahuan polis 1983 memerikan kecekapan sebagai sifat individu yang dalam situasi tertentu di setiap utilizar dapat meninggal execute satu tugas tertentu.Jadi, kecekapan bukan semua tentang kebolehan menyimpan dan menukar arahan- arahan yang
1. mungkin banyak dan kompleks .
Car Companies, Anyway?
Cruise Origin reveal
Even if the above argument against GM seems a bit unfair, I believe it still has positives to rely on. The company is doing well in terms of electric vehicle sales, battery development and home energy solutions, and is catching up with its rivals in terms of EV profitability. Not to mention, GM's Super Cruise ADAS technology is deserving of more recognition. However, the loss of Cruise or the concept of it might be a significant setback, especially if one thinks long-term.
Malaysian customers and investors, let us explore the role and expectations of car manufacturers. How should the industry be perceived, and which companies do you believe will shape the future of the automotive sector? Share your thoughts and insights with us below.
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