In the wake of a pedestrian crash involving one of its self-driving cars, General Motors’ Cruise robotaxi unit has proactively proposed a $75,000 settlement to resolve an ongoing investigation by California regulators. The California Public Utilities Commission had summoned Cruise to a hearing on February 6, accusing the company of deceptive practices related to the incident and making misleading public statements.
Following the October crash, Cruise, a subsidiary of General Motors, terminated nine executives, including its COO and chief legal and policy officer. In response to the regulatory summons, Cruise has requested a deferral of the hearing and advocated for an alternative dispute resolution process.
Engaging law firm Quinn Emanuel to assess its response to the incident, Cruise stated in a recent filing that it expects the investigation’s findings to be publicized before the scheduled hearing date. As part of its proposed settlement, the company commits to enhancing its reporting of collisions to the commission.
Cruise, which withdrew all its self-driving vehicles from testing after California suspended its permit, emphasized its dedication to significant process improvements in its interactions with regulators. The company also expressed a commitment to increased transparency, cooperation, and the restoration of regulatory trust with the commission.
The autonomous vehicle company faced additional setbacks, including the resignation of its CEO and co-founder, as well as a reduction of its workforce by 24%, involving the layoff of 900 employees in December. The pedestrian incident occurred on October 2 when a Cruise vehicle, navigating a pullover maneuver, collided with a pedestrian who was then dragged for 20 feet.
California authorities suspended Cruise’s testing permit, prompting the company to cease all U.S. testing operations. The regulatory scrutiny extended beyond the state level, with the National Highway Traffic Safety Administration launching an investigation into pedestrian risks associated with Cruise vehicles in the same month.
General Motors, acknowledging Cruise’s financial challenges, disclosed plans to cut costs at the autonomous unit, which reported losses exceeding $700 million in the third quarter and over $8 billion since 2016.
As the investigation unfolds, Cruise aims to navigate a path of increased transparency, cooperation, and collaboration with regulators to rebuild trust and address the aftermath of the October incident.
