GM’s Acquisition of Cruse to Boost Self-Driving Technology Implementation
On 11 March 2016, General Motors (GM) revealed that it would be acquiring the Francisco-based developer of autonomous technology, Cruise Automation. Although GM did not disclose the terms of finances, according to some reliable sources (Fortune) it is believed that the deal of acquisition was closed at almost $1 billion or more in a combination of stock and cash. Cruise Automation is a three-year old company, renowned for an aftermarket “kit” it created.
This kit typically enabled buyers or owners of certain types of cars (Audi S4 and A4 models just to name a few) to convert their automobiles into autonomous vehicles for driving on the highways. Following the success of this kit, GM seemingly became interested in integrating Cruise’s amazing autonomous technology in its original manufacturing process for its top-of-the-line car – hence stepping up against competitors like Tesla Motors, Mercedes-Benz, Toyota, Google to enter the autonomous arms race.
Since General Motors has long been criticized for adopting new technologies rather “slowly” and not to mention letting technology-focused companies like Google paving the way and taking the lead in manufacturing self-driving cars, this acquisition only proves to show how serious GM actually is. The brand has quietly been working on its autonomous driving technologies, and is already preparing to roll out a level 2 semi-autonomous feature on its vehicles.
This feature known as “Super Cruise” will automate two primary control functions of GMs vehicles and will debut in 2017 on the Cadillac CT6 model sedan (on which the technology will be present as an “available” option). Meanwhile, Cruise Automation will be operating as an independent unit within General Motors, while maintaining its offices in San Francisco. GM president Dan Ammann told Re/Code “This will significantly accelerate the timeline for bringing autonomous vehicles to market,”
The plan of GM is to typically grow Cruise Automation aggressively under its own wing, planning to hire the best talent it can to forward the technology of driverless cars and shift it into full gear. Currently, more than 40 people are working at Cruise Automation, however, the brand reflecting the acquisition by GM has currently 10 new job openings in engineering and could hire even more people for further boosting the autonomous plan.
Meanwhile, the team of executives and engineers of GM and Cruise will be led by Doug Parks, who will be responsible for all the vital features and technologies present in the vehicle, including its safety integration, electrical design, and software and controls. This acquisition of Cruise is General Motors’ key to redefining the future of autonomous driving. However, GM has even bigger plans, as the beginning of 2016, the automobile manufacturing firm entered into a partnership with the ride-sharing company popularly known as “Lyft”.
This strategic alliance with the ride-sharing company has resulted in the formation of GM’s own car-sharing brand “Maven”, which has the main aim of introducing a network of self-driving cars to travel passengers around towns and cities, without a driver. It is not difficult to see what GM’s end game is and surely, they seem well prepared to carry it out.
