General Motors is slashing Cruise's 2024 budget by $1 billion despite a commitment to its robotaxi venture. Following an accident resulting in investigations, GM seeks to refocus Cruise, now enduring a $2.7 billion loss and restructuring. CEO Barra emphasizes safety and talent retention, as expansion plans are paused.
An investigation by Quinn Emanuel law firm into an October crash involving a Cruise driverless car revealed a lack of clear communication with regulators and prioritization of reputation over safety. Following the incident, the Justice Department and other agencies are investigating, Cruise has halted operations, laid off staff, and replaced its CEO. The self-driving subsidiary of General Motors is now seeking to rebuild trust and resume business..
In a blog post, Cruise published the detailed Quinn Emanuel report on the October 2nd crash where a pedestrian was struck by a Cruise AV after a hit-and-run incident. Despite Cruise's claim of no intentional deceit, the report uncovers procedural and leadership shortcomings, leading to misinformation and incomplete disclosures to regulators and the media. This resulted in the suspension of Cruise's driverless permits. Changes including high-level employee departures and operational overhauls are being implemented.
The DOJ and SEC are investigating Cruise, a GM-owned autonomous car company, following an incident in October where a car hit and dragged a pedestrian. This comes after the California DMV suspended Cruise's permits. The company, which paused its driverless testing, is cooperating with authorities and released a report on the crash.
On December 11th 2023 San Francisco sued California's Public Utilities Commission to limit robotaxis, following safety incidents with autonomous vehicles (AVs) like those from Cruise and Waymo. The suit seeks to review and revoke permits that allowed unchecked expansion and demands better safety measures and regulations. Although Cruise lost its permits, Waymo, expanding to LA, remains affected. Waymo has challenged the city's appeal, emphasizing its commitment to safe operations.
San Francisco is suing a state commission for letting autonomous vehicle companies, like Waymo and GM's Cruise, operate without strict regulation, following numerous safety incidents. The city's action reflects growing concerns over self-driving cars, which were initially welcomed. The legal challenge aims to compel more rigorous safety standards and reporting for these vehicles, amidst fears they're compromising public safety and disrupting emergency services. Waymo remains operational, while Cruise lost its permit after a crash.
