Self-driving technology developer Motional decided to delay robotaxi deployments with ride-hailing companies Uber Technologies Inc. and Lyft Inc. again while laying off employees as part of the restructuring process of the loss-making joint venture of Hyundai Motor Group, another setback to the autonomous driving industry.
“In collaboration with Motional’s shareholders, we’ve updated our strategic plan to focus resources on the continued development and generalization of our core driverless technology, while de-emphasizing near-term commercial deployments and ancillary activities,” Motional President and CEO Karl Iagnemma wrote in a Tuesday blog post.
“This updated strategy requires a streamlining of our teams, resulting in a reduction in staff across the business,” Iagnemma said without detailing the extent of the job cuts.
Aptiv decided to cut its common equity interest in Motional to 15% from the current 50% by selling an 11% stake to the leading South Korean automaker and exchanging up to 21% for preferred shares. The Motional IONIQ 5 robotaxi in East Boston (File photo, courtesy of Motional) GOAL FOR THE FUTURE, NOT THE PRESENT
Iagnemma recognized the difficulties the self-driving technology industry is facing.
“Large-scale driverless deployment will not happen overnight. Driverless vehicles will enter the market when the technology has evolved, and – just as importantly – when the business case for autonomous deployment is clear,” he said.
“Large-scale deployment of AVs remains a goal for the future, not the present,” he said, referring to autonomous vehicles.
Legacy automakers, which had pinned high hopes on self-driving vehicles, also reduced spending on the technology.
Cruise LLC owned by General Motors Co. (GM) lost its self-driving license in San Francisco due to a series of accidents, de facto suspending its driverless car business. GM cut investments in Cruise by $1 billion this year. A Cruise vehicle collides with a fire truck in San Francisco (File photo, captured from ABC News) Ford Motor Co. gave up developing Level 4 autonomous vehicles, which run without human intervention while shutting down Argo AI, its self-driving joint venture with Volkswagen AG in 2022.
Apple Inc., the iPhone smartphone series founder earlier eyeing autonomous electric vehicles, followed the move by dissolving the team for the development of such a car.
TESLA BUCKS TREND
Tesla Inc., the world’s second-largest EV producer, is actively developing self-driving technology as its future growth engine, however.
Tesla CEO Elon Musk vowed to introduce its dedicated robotaxi with full self-driving (FSD) technology on Aug. 8, to revive EV sales, which have been sluggish.
It is uncertain whether the US EV maker to realize the plan, given lawsuits over car accidents related to its Autopilot, an advanced driver assistance system, in the country, industry sources said.
US auto safety investigators are seeking detailed answers and documents from Tesla in a probe into the automaker's December recall of more than 2 million vehicles to install new Autopilot safeguards, Reuters reported on Tuesday.
