Self-driving technology company Motional has announced that it will be focusing on developing its core technology and delaying commercial robotaxi deployments. This decision comes as the company undergoes a restructuring process and plans to lay off staff. Motional’s move follows electric carmaker Tesla’s upcoming unveiling of its robotaxi, called “Cybercab,” on August 8. Legacy automakers are also cutting back on spending for autonomous driving technology due to regulatory and safety challenges.
As part of the restructuring process, Motional will be reducing its workforce and focusing on developing and scaling its driverless technology. The company will also be stepping back from near-term commercial deployments and other related activities. Although the exact number of employees to be laid off was not disclosed, Motional confirmed that roles across various locations and functions will be affected.
In response to the announcement, Aptiv, an auto parts supplier that has a stake in Motional, announced that it would be selling its stake in the joint venture with Hyundai Motor. In response, Hyundai Motor provided an additional $475 million in funding to Motional. This funding will help the startup continue to develop its driverless technology and bring it closer to commercial deployment.
Motional CEO Karl Iagnemma stated that the deployment of driverless vehicles on a large scale will take time and will only happen when the technology has sufficiently matured and a clear business case for autonomous deployment is established. He emphasized that safety is paramount for the company and that they are taking a measured approach to bringing autonomous vehicles into widespread use.