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General Motors Stock Slides After Sudden Exit Of Cruise CEO Dan Ammann

Dan Ammann, who has led GM's self-driving car subsidiary Cruise since 2019, abruptly stepped down last night, the carmaker said.

General Motors  (GM) - Get General Motors Company Report shares slumped lower Friday after the carmaker lost a key executive in its self-driving car subsidiary.

GM said late Thursday that Cruise CEO Dan Ammann would be stepping down from its majority-owned division immediately, with CTO Kyle Vogt tabbed as his interim replacement. 

Cruise, which is close to receiving permits to operate its self-driving taxis in San Francisco, was recently touted by GM CEO Mary Barra as having the potential to generate $50 billion in revenues over the next six years.

"Alongside this leadership change ... GM (will) aggressively pursues addressable AV markets beyond rideshare and delivery," the carmaker said in a statement. "GM is deeply committed to its vision of zero crashes, zero emissions, zero congestion, and AV technology will play a critical role in realizing it."

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General Motors shares ended off $3.23, or 5.5%, at $55.16 Friday.

GM's EV ambitions were laid out in detail earlier this fall, with the carmaker vowing to double it annual revenue by the end of the decade.

Cruise, in fact, was a central plank in that forecast, which included EV and traditional combustion-engine cars that could collectively lift annual revenues to around $280 billion by 2030.

GM CFO Paul Jacobson noted that the carmaker could commit as much as $10 billion in annual capital spending while still having enough to return cash to shareholders.

The carmaker posted stronger-than-expected third quarter earnings of $1.52 per share in October, on revenues of $26.8 billion, adding that full-year profits will likely hit the high end of its prior forecast, as the carmaker navigates a global semiconductor shortage amid its ongoing shift towards electrified vehicles.