GM’s decision to shut down its Cruise robotaxi program continues to ripple through the market, extending to the self-driving car company’s minority investors.
Microsoft, which in 2021 made an investment into Cruise, will take $800 million impairment charge as a result of GM’s actions, according to a regulatory filing. Microsoft said the charge will be recorded in other income and expense and was not included in its second quarter guidance provided on October 30, 2024. It is estimated to have a negative impact of approximately $0.09 to second quarter diluted earnings per share, according to the filing.
General Motors announced Tuesday it would no longer fund development of the robotaxi and instead absorb its self-driving car subsidiary Cruise and combine it with the automaker’s own efforts to develop driver assistance features — and eventually fully autonomous personal vehicles. GM acquired the self-driving startup Cruise in March 2016 for $1 billion. Since then, GM has spent more than $10 billion on the company in a bid to commercialize autonomous vehicle technology via a robotaxi business.
Minority investor Honda said Wednesday it will stop funding a joint venture with General Motors and Cruise to launch a robotaxi service in Japan.
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