Cruise discloses federal probes
Add Axios as your preferred source to
see more of our stories on Google.
General Motors' autonomous vehicle business, Cruise, disclosed it was being investigated by federal prosecutors and the SEC for its handling of an October 2023 pedestrian accident.
- Why it matters: The startup was once seen as a leader in self-driving technology, with bold plans to deploy robotaxis in more than a dozen cities this year, Axios' Joann Muller writes.
Driving the news: The disclosure was made in an independent report by a law firm hired by the company and released today.
Zoom in: In the wake of the investigations — it had previously disclosed probes from the California DMV, the California Public Utilities Commission and the National Highway Traffic Safety Administration — Cruise must now try to rebuild its damaged reputation by overcoming safety concerns and a lack of public trust.
Catch up fast: On Oct. 2 in San Francisco, a hit-and-run driver struck a pedestrian and launched her into the path of a Cruise robotaxi, which also hit her.
- The Cruise car then pulled forward 20 feet, dragging the pedestrian underneath the car.
- The sequence of events caused serious injuries, but the post-collision dragging wasn't fully shared with regulators or the media.
What they're saying: Cruise's loss of its robotaxi license in California was "a self-inflicted wound" caused by poor leadership, colossal mistakes in judgment and an "us vs. them" mentality with regulators, the report stated.
What they found: Law firm Quinn Emanuel Urquhart & Sullivan determined that Cruise leaders and employees didn't intentionally deceive or mislead regulators.
- Rather, a combination of technical difficulties, bad decisions and misplaced priorities caused them to omit vital information from their public disclosures.
The bottom line: Cruise is one of the biggest bets GM has made under CEO Mary Barra, who insists GM and Cruise are still committed to a self-driving future.
