GM's autonomous vehicle unit, Cruise, has found itself embroiled in controversy after admitting to submitting a false report linked to a pedestrian accident involving one of its self-driving cars. The incident occurred last October when a Cruise robotaxi struck a pedestrian who had been thrown onto the roadway by another vehicle, and failed to disclose key details of the event.
Recently, the U.S. Department of Justice announced Cruise will pay a $500,000 criminal fine as part of a deferred prosecution agreement. This agreement not only imposes financial penalties but also places obligations on Cruise to comply with government inquiries going forward, including the establishment of a safety compliance program. If the company fails to meet these requirements over the next three years, it risks being prosecuted.
Martha Boersch, the Chief of the Office of the U.S. Attorney’s Criminal Division, emphasized the importance of truthful reporting from companies utilizing autonomous vehicles, stating, "Federal laws and regulations are in place to protect public safety on our roads. Companies with self-driving cars...must be fully truthful in their reports to their regulators.”
The incident, which led to the fine, involved the robotaxi running over the pedestrian and dragging her approximately 20 feet as the vehicle attempted to pull over. Although the car initially stopped after hitting her, it did not detect her presence underneath, leading to serious injuries. Alarmingly, Cruise did not disclose this dragging detail to the National Highway Traffic Safety Administration (NHTSA), which later became glaringly apparent during the investigation.
Notably, Cruise had reached at least $8 million as reported settlement with the injured woman and also faced previous penalties from regulatory bodies. Prior to this admission, Cruise was fined $1.5 million by the NHTSA for its failure to report the circumstances accurately. They had also agreed to pay $112,500 to the California Public Utilities Commission to settle disputes without litigation.
Since the incident, Cruise’s operations have been significantly affected. Their license to operate self-driving vehicles was suspended by the California DMV, forcing the company to halt both its driverless and manned robotaxi services for safety reviews. The company has since admitted to internal problems, which resulted in the resignation of both CEO Kyle Vogt and co-founder Daniel Kan. Appropriately, GM decided to tighten its grip on Cruise by slashing funding and reducing workforce by nearly 24%.
The aftermath of this incident also continued to haunt Cruise, as multiple investigations have been launched against the company, including by the Securities and Exchange Commission (SEC). The NHTSA's inquiries remain active, aimed primarily at ensuring robotaxis can navigate safely around pedestrians. Following the event, Cruise issued recalls for nearly 1,200 vehicles to address issues stemming from unexpected braking.
Despite these setbacks, Cruise is working to restore its reputation. Recently, they relaunched their operations with human drivers supervising their autonomous vehicles across various locations, including Dallas and Phoenix. They aim to integrate their robotaxis within the Uber ride-hailing platform by 2025—an attempt to regain public trust and market relevance.
For Cruise, the road to recovery will undoubtedly be demanding, especially as they step up to meet both regulatory and public expectations after admitting to their wrongdoing. The reflections of this incident will linger as the autonomous vehicle industry continues to evolve. With competition from other players like Tesla and Waymo heating up, Cruise must navigate these choppy waters carefully to establish itself as a trustworthy manufacturer of self-driving technology.
This incident emphasizes the complexity of introducing autonomous vehicles onto public roads, raising questions not just about technology but about corporate accountability and transparency. How Cruise adapts and moves forward under new leadership will surely be closely watched as they attempt to rebuild trust with consumers and regulators alike.
