Cruise from General Motors is likely to be punished for improper cooperation in the accident.
General Motors‘ Robotaxi Department Cruise faces potentially $1.5 million in fines and additional sanctions for failing to disclose details of an Oct. 2 accident in which a robotaxi dragged a pedestrian about twenty feet after it was hit by another vehicle, according to a California agency.
Separately, GM CEO Mary Barra said Monday that Cruise’s external safety review would last into the first quarter of 2024. The company is also examining Cruise’s dealings with regulators and first responders through external reviews. Barra emphasized transparency and urgency in this process.
Growing regulatory pressure could hamper GM and Cruise’s efforts to… California efforts to rebuild trust and resume operations after coming under fire for allegedly concealing information about the San Francisco accident.
Last month, Cruise suspended all driverless and monitored road trips in the U.S., expanded a safety review of its robotaxis, and CEO Kyle Vogt and Chief Product Officer Daniel Kan both resigned.
The California Public Utilities Commission (CPUC), in a document dated Friday, ordered Cruise to appear before a hearing on February 6, alleging that the company misled the commission by omission regarding the extent and seriousness of the accident. The order was made by a judge and a CPUC commissioner.
The CPUC said in its Friday decision that it took Cruise 15 days to provide a full report on the accident. This could result in a fine of up to $1.5 million.
Cruise’s troubles are also a setback for an industry that relies on public trust and cooperation with regulators. The company had announced ambitious plans in recent months to expand into more cities and provide fully autonomous taxi rides. GM had told investors that Cruise and its technology could generate $50 billion a year in sales by 2030.
GM has hired an outside law firm to conduct a review of cruise management’s handling of the Oct. 2 incident and response to regulators. Cruise also plans to relaunch in an unspecified city before expanding to others. GM must submit a statement of facts and arguments regarding the CPUC’s allegations, as well as any attachments, to the administrative law judge by December 18.