Cruise LLC, the autonomous vehicle subsidiary of General Motors, has put forth a settlement proposal of $75,000 to the California Public Utilities Commission. This move follows an inquiry into Cruise’s failure to fully disclose details surrounding a serious pedestrian crash involving one of its self-driving cars. As part of the settlement, Cruise commits to improving cooperation with regulators and enhancing its collision reporting practices.
Cruise LLC is a United States-based company that develops and tests autonomous car technology. It is based in San Francisco and is majority-owned by General Motors. The company was co-founded by Kyle Vogt, Dan Kan, and others in 2013.
Cruise Crash Incident and Investigation:
The investigation stems from an incident on October 2, where a pedestrian was struck by another vehicle and subsequently trapped beneath a self-driving Cruise car. The pedestrian was dragged for 20 feet, prompting California authorities to suspend Cruise’s driverless testing permit. Allegations against Cruise include the omission of crucial information about the severity of the accident and the issuance of misleading public statements.
Cruise’s Response and Upcoming Actions:
In response to the incident and the ongoing investigation, Cruise has taken decisive steps. Nine executives, including the COO and chief legal and policy officer, have been dismissed. The company enlisted the services of Quinn Emanuel law firm to conduct a comprehensive review of its response to the crash, with the findings slated to be made public before the scheduled hearing on February 6. Despite the setbacks, Cruise affirms its dedication to transparency and improved cooperation with regulatory bodies.
Impact on Cruise:
The impact of this incident has not only impacted Cruise, but General Motors as well. Following the suspension of its testing permit, Cruise halted all autonomous testing operations in the U.S. The CEO and co-founder departed in November, and a substantial 24% reduction in the workforce, equating to 900 layoffs from its 3,800 employees, was announced in December. Additionally, Cruise reported a staggering loss of over $700 million in the third quarter, contributing to accumulated losses exceeding $8 billion since 2016.
Despite initial forays into direct-to-consumer kits for retrofitting vehicles with limited self-driving capabilities, Cruise shifted its focus to conquer the challenges of city driving.