Cruise discloses federal probes
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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.
