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Saturday
Feb012025

GM bets big on Super Cruise, eyes billions in revenue

Photo: General Motors

General Motors is doubling down on its Super Cruise driver-assistance technology, aiming to generate billions in revenue and establish itself as a tech leader. This move comes as GM exits its loss-making Cruise robotaxi business.

GM projects Super Cruise will bring in approximately US$2 billion (around CA$2.9 billion) in annual revenue within the next five years. The company sees this high-margin revenue stream as key to its transformation, similar to Tesla's focus on technology.

Super Cruise offers partially automated driving capabilities, comparable to Tesla's Autopilot. However, GM emphasizes its more robust sensing system and driver attention monitoring. Currently available on around 20 higher-end GM models, Super Cruise is either standard or offered as a US$2,200-US$2,500 (~CA$3,200-CA$3,635) option. After a three-year trial, users can subscribe for US$25 (~CA$36) a month or $250 (~CA$363) annually.

While GM's stock valuation hasn't yet reached Tesla-like levels, the company is optimistic about Super Cruise's potential. The company's CEO Mary Barra highlighted plans to double the Super Cruise fleet to around 720,000 vehicles by 2025. The company also aims to significantly increase subscription revenue as more trial periods expire.

SOURCE

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