March 14, 2016
General Motors has reportedly acquired a San Francisco self-driving car startup for more than $1-billion in cash and stock. Launched in 2013, Cruise Automation makes sensors that transform regular vehicles such as Audi S4 and A4 models into ones that can drive themselves.
Cruise Automation co-founder, Kyle Vogt says 40 employees will remain in the City, but he’s seeking to aggressively expand the team as it becomes a part of GM’s newly formed autonomous-driving group.
GM says the acquisition is a “critical building block” to its automation goals, and it plans to rapidly integrate Cruise’s technology within its OEM process and fleet of vehicle brands. The deal, expected to close in the second quarter of this year, underscores the competitive race toward development of autonomous vehicles.
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