Honda Motor Co. is terminating its autonomous vehicle partnership with General Motors Co., dealing another blow to the struggling robotaxi industry that has faced mounting safety concerns and profitability challenges.
The Japanese automaker’s decision follows GM’s announcement to acquire full ownership of its self-driving unit Cruise and integrate it with the parent company’s technical operations. Honda had invested $852 million in Cruise, betting on a global rollout of autonomous taxis that included plans for 500 vehicles in Tokyo by early 2026.
The partnership’s collapse underscores the growing skepticism about the commercial viability of fully autonomous vehicles, which require investments in the tens of billions of dollars. The venture faced setbacks after a Cruise vehicle was involved in a pedestrian accident in California last year, leading to operational suspensions.
Honda’s search for a new autonomous driving partner may prove challenging. Previous discussions with Alphabet Inc.’s Waymo yielded no agreement. The development leaves Honda further behind U.S. and Chinese competitors in the race for self-driving technology, as companies like Tesla Inc. and Baidu Inc. advance their autonomous capabilities.
A Honda spokesperson indicated the company would explore alternative mobility solutions while reassessing its autonomous vehicle strategy.
