Cruise, the self-driving car company, has been making headlines ever since its inception in 2013. With its innovative technology and partnership with General Motors (GM), Cruise has quickly become a key player in the autonomous vehicle industry.
However, there is still some confusion surrounding the ownership of Cruise. Is it fully owned by GM? Let’s take a closer look.
The Early Days of Cruise
Cruise was founded in 2013 by Kyle Vogt, a young entrepreneur with a passion for robotics and artificial intelligence. Initially, Cruise was an independent startup that focused on developing an aftermarket kit that could turn any car into a self-driving vehicle. The kit was designed to be affordable and accessible to the general public.
GM’s Acquisition of Cruise
In 2016, General Motors acquired Cruise for a reported $1 billion. This acquisition was seen as a major win for GM, as it gave them access to Cruise’s cutting-edge technology and talented team of engineers.
GM’s Majority Stake in Cruise
While GM did acquire Cruise, it is important to note that they did not buy the entire company outright. Instead, GM purchased a majority stake in Cruise, giving them control over the company’s operations and direction.
Cruise’s Independent Status
Despite being majority-owned by GM, Cruise still operates as an independent entity within the larger corporation. This means that while GM has some say over what happens at Cruise, the company still has its own leadership team and decision-making process.
- Benefits of Partial Ownership: There are many benefits to this arrangement for both GM and Cruise. For GM, they get access to cutting-edge technology without having to build it from scratch themselves.
For Cruise, they get the financial backing and support of a major corporation while still maintaining their independence.
- Future Plans: Looking ahead, both GM and Cruise have big plans for the future. GM has committed to investing heavily in autonomous technology, with the goal of launching a fully self-driving vehicle by 2021. Cruise, on the other hand, is focused on developing a ride-hailing service that utilizes self-driving cars.
Conclusion
In conclusion, while GM does own a majority stake in Cruise, it is important to understand that Cruise still operates as an independent company within GM. This arrangement allows both companies to benefit from each other’s strengths and work towards a common goal of bringing self-driving cars to the masses.