GM president hints at a strategic discrepancy with the departing Cruise CEO

Date:

Cruise Automation COO Dan Kan (from left to right), Cruise Automation CEO Kyle Vogt, and General Motors President Dan Ammann met on Tuesday, November 20, 2018, at the Cruise Automation office in San Francisco, California.

Source: Noah Burger | General Motors

Detroit – General Motors Dan Ammann, CEO of Cruise, the company’s majority-owned self-driving car subsidiary, was a mom about the sudden departure on Thursday.

However, GM President Mark Royce hinted at possible strategic disagreements on Friday, and the company and its subsidiary are now “perfectly in agreement” under new interim leadership with cruise founder Kyle Vogt. Said that.

Lois declined to comment far beyond the company Statement released on Thursday In the afternoon about Amman leaving the cruise, but Friday’s remarks hint at an upper rift.

“Cruise believes it has a great relationship with Cruise’s co-founder, president and CTO, Kyle Vogt. [chief technology officer].. He has assumed the role of interim CEO, “Royce told CNBC’s Phil Lebeau in an interview with” Squawk on the Street. “.. “

“Cruise and GM, we are now in perfect agreement with accelerating the co-driving car strategy we outlined on the recent Investor Day,” Royce said.

These growth plans, detailed by Amman in early October, included commercializing Robotaxi in San Francisco as early as next year and subsequent business expansion. By 2030, 1 million such vehicles.

At this time, it is unknown what led to Amman’s sudden departure.It was that Cruise followed some new speculation from Wall Street analysts. May be more valuable Spin off from the car maker.

Citi analyst Itai Mikaeri told investors in a Friday memo that GM said, “Because cruises are now considered an integral part of consumer AV, Amman’s departure is a” strategic decision on cruises. (IPO timing) “I think it’s about”. ” [autonomous vehicle] strategy. “

GM’s share price fell 7% on Friday morning to $ 54.51 per share. Friday’s share closed at $ 55.16, down 5.5%.

Former investment banker Amman began leading the cruise in 2019 after serving as GM’s president and chief financial officer. He is credited with the acquisition of Cruise in 2016.

However, the cruise under Amman missed some important milestones. In particular, we plan to launch a public ride-hailing service in San Francisco in 2019.The company Delayed those plans That year, we will conduct further testing and obtain regulatory approval.

A GM spokesman refused to elaborate on Royce’s comments. It has greater and more sustainable value for both GM and Cruise shareholders. “

Since the acquisition of Cruise, GM has invested billions of dollars in its business, attracting investors such as: Honda Motor Co., Ltd., SoftBank Vision Fund, and more recently Walmart When Microsoft..

–CNBC Michael Bloom Contributed to this report.

GM president hints at a strategic discrepancy with the departing Cruise CEO

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The post GM president hints at a strategic discrepancy with the departing Cruise CEO appeared first on Eminetra.

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