General Motors reported on their financials recently with an $8.1 billion in net profit for all of 2018, marking a big recovery from 2017. However not every piece of the financial report was good news. GM's self-driving car divisions saw a loss of $728 million, an increase from the year before.
GM purchased Cruise in 2016 with the aim of commercializing self-driving cars—but that hasn't happened yet. Aside from a deal with DoorDash to use prototype autonomous cars as delivery vehicles, Cruise is still firmly in research and development mode. That means GM will likely need to continue pumping money into Cruise, without the division having any real options to earn revenue.
Cruise has, however, attracted investments from major outside parties. In 2018, it secured deals with Honda and SoftBank, the Japanese conglomerate that is also a major investor in Uber.
GM also indicated that it would redirect more funds to autonomous-driving tech after making major cuts to staff, production facilities, and its existing vehicle lineup. In a major vote of confidence in Cruise, GM appointed Dan Ammann as the division's new CEO in November 2018. Ammann, who replaced Cruise co-founder Kyle Vogt as CEO, was previously president of GM and played a crucial role in helping the automaker recover from its bankruptcy.
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