After years of hesitation and shifting strategies, legacy automakers are accelerating their autonomous vehicle (AV) programs to reclaim ground lost to tech rivals. According to a Financial Times report published Sunday (Nov. 2), the renewed push is being led by companies like General Motors (GM), Volkswagen, and Stellantis, which are each moving to bring advanced driver-assistance and semi-autonomous systems to market faster than ever.
The industry’s momentum marks a sharp turn from the slowdown seen in recent years. GM, which paused its robotaxi expansion in 2024 amid mounting costs and safety reviews, said it now plans to launch an “eyes-off, hands-free” semi-autonomous driving system across its consumer vehicles by 2028.
“Autonomy will make our roads safer. It will be the cornerstone of GM’s modern portfolio going forward,” said Sterling Anderson, GM’s new Chief Product Officer and a veteran of Tesla’s Autopilot and co-founder of Aurora, a driverless technology startup.
Overview: The New Era of Automotive Autonomy
| Key Automaker | Current Focus | Autonomy Target Year | Key Partners |
|---|---|---|---|
| General Motors (GM) | Semi-autonomous “eyes-off” driving system for consumer cars | 2028 | In-house (Cruise/GM tech) |
| Volkswagen | Expanding AV fleet in partnership with Uber | 2026–2028 | Uber, Cariad |
| Stellantis | Developing fleet-scale AV solutions with Uber | 2026 | Uber |
| Waymo (Alphabet) | Expanding robotaxi network in U.S. and Asia | Ongoing | N/A |
| Baidu | Operating Apollo Go robotaxis across China | Ongoing | N/A |
GM Leads the Charge With New Autonomous Driving Roadmap
After retreating from its fully driverless robotaxi ambitions last year, GM has pivoted to a more incremental, consumer-facing approach to autonomy. Under Anderson’s leadership, the company will focus on “Level 3+” autonomous systems — cars that can drive themselves on certain highways and conditions without driver intervention.
This technology will integrate AI-driven perception, mapping, and sensor fusion, leveraging GM’s investments in its Cruise division and new partnerships across software and semiconductor firms.
“We are no longer looking at autonomy as a moonshot, but as a scalable, product-level feature,” said Anderson. “This next generation of vehicles will learn from data in real time to make roads safer for everyone.”
The company’s strategy mirrors the evolution of Tesla’s Autopilot and Full Self-Driving (FSD) models but emphasizes safety and regulatory compliance, areas where regulators have increasingly scrutinized claims of “self-driving” capabilities.
Tech Giants Still Hold the Edge
While carmakers are re-entering the race, Big Tech remains years ahead in scaling true Level 4 and Level 5 driverless systems. Waymo, a division of Alphabet, has already deployed commercial robotaxi services in Phoenix, Los Angeles, and San Francisco, while Baidu’s Apollo Go operates across major Chinese cities.
These companies have the advantage of deep AI expertise, massive data centers, and flexible capital structures that allow for long-term investment without immediate profitability.
“The carmakers need to produce profit and cash whereas the big tech giants need to produce growth,” said Mike Tyndall, Analyst at HSBC. “The market is not holding them to the same agenda, which gives the tech giants a much greater advantage to pursue things like robotaxis.”
This competitive imbalance underscores why automakers like GM, Volkswagen, and Stellantis are partnering with companies such as Uber, which already have mobility networks in place to distribute autonomous vehicles at scale.
Partnerships Take Center Stage
The Volkswagen Group and Stellantis have both struck partnerships with Uber to co-develop and deploy autonomous ride-hailing fleets by 2026. These collaborations will combine the carmakers’ production capacity with Uber’s on-demand mobility infrastructure, allowing AV fleets to launch faster and more efficiently.
Volkswagen’s Cariad software division is spearheading the company’s AI integration, while Stellantis plans to incorporate AV software into its Chrysler and Peugeot lineups.
“Uber’s scale provides the real-world data automakers need to refine AV systems,” noted Carla Reyes, Senior Mobility Analyst at AutoForecast Solutions. “This is not just about cars — it’s about ecosystems.”
Beyond Cars: The Expanding Frontier of Autonomy
The race toward autonomy extends well beyond road vehicles. In the maritime sector, companies like Blue Water Autonomy are bringing AI-driven navigation to naval and commercial shipping.
In a September interview with PYMNTS CEO Karen Webster, Rylan Hamilton, founder of Blue Water Autonomy, explained how smaller, unmanned vessels are revolutionizing naval operations for the U.S. Navy.
“You put the payloads on top, in containers, and you send it out to sea,” Hamilton said. “These ships don’t need to carry people, which makes them faster, cheaper, and easier to build and deploy.”
Hamilton added that autonomous maritime technology is becoming more commoditized, requiring fewer software engineers and less hardware customization — a parallel to what’s now happening in the automotive space.
The Cost Conundrum: Scaling Autonomy Amid Tight Margins
Despite the progress, the financial challenge remains enormous. Developing and scaling autonomous systems requires billions in R&D investment, advanced semiconductor supply chains, and regulatory coordination.
Automakers are under pressure to balance these long-term projects with short-term profitability. As inflation, high interest rates, and EV transition costs persist, adding AV investments can strain even the largest balance sheets.
“Autonomous tech is moving from a hardware problem to a systems problem,” said Jonathan Chu, Automotive Industry Partner at PwC. “But it’s also becoming a capital problem — one that only partnerships can solve.”
For traditional automakers, this means adopting incremental autonomy strategies — focusing on driver-assistance and commercial-use cases first, before pursuing full-scale robotaxi deployments.
Industry Outlook: Autonomy Enters Its Second Act
The autonomous vehicle industry is entering what analysts call its “Second Act” — a phase marked by realistic implementation, strategic partnerships, and gradual integration into consumer products.
| Stage | Period | Industry Focus | Outcome |
|---|---|---|---|
| First Act (2015–2023) | “Moonshot Era” | Tech-led R&D, robotaxi pilots | Slow progress, safety and cost challenges |
| Second Act (2024–2030) | “Integration Era” | Incremental adoption, regulatory cooperation | Consumer-level semi-autonomy, fleet expansion |
By 2028, most analysts expect semi-autonomous systems to become standard in mid-tier vehicles, while fleet-level AV operations gain broader regulatory acceptance.
“This is autonomy’s reboot,” said Sterling Anderson. “It’s about practical deployment, not hype.”
FAQs
Why are automakers accelerating their autonomous vehicle efforts now?
Because of renewed competition from tech companies like Waymo and Baidu and the need to stay relevant as the industry shifts toward software-driven mobility.
What is GM’s new plan for autonomy?
GM will introduce an “eyes-off, hands-free” semi-autonomous system for consumer cars by 2028, focusing on scalable and regulated innovation.
Which automakers are partnering with Uber?
Volkswagen and Stellantis are working with Uber to develop and expand autonomous ride-hailing fleets.
What are the main challenges to scaling autonomous technology?
High R&D costs, regulatory approval processes, and the need for advanced infrastructure remain key challenges.
Are other industries adopting similar technologies?
Yes — the maritime sector, through companies like Blue Water Autonomy, is applying similar AI navigation and automation technologies for defense and logistics.