Key Takeaways
- For failing to disclose important information on a robotaxi accident in San Francisco, Cruise is paying a $500,000 punishment.
- In addition to the $1.5 million NHTSA fine, there are other penalties.
- Cruise is gradually bringing its commercial taxi services back online.
Cruise, the self-driving car branch of General Motors, will also pay a $500,000 punishment for filing a false report regarding an accident in October 2023 in which a pedestrian was hurt by a robotaxi.
According to TechCrunch, the fine is a component of a deferred prosecution arrangement with the US Department of Justice. In addition, the agreement requires Cruise to implement a safety compliance program, collaborate with investigators, and provide the US Attorney’s Office with yearly progress reports.
Cruise is charged with purposefully leaving out crucial information regarding the San Francisco tragedy. Cruise omitted the fact that the taxi dragged the woman around 20 feet as it pulled over, even though the robotaxi didn’t hit her until she was thrown into its path by another vehicle.
Cruise’s business has already been impacted by the catastrophe. Although the firm settled a $1.5 million fine from the National Highway Traffic Safety Administration (NHTSA), the agency is still investigating how Cruise cars respond to pedestrians, and the company’s California commercial operation permits were temporarily revoked. The business consented to pay the California Public Utilities Commission (CPUC) $112,500 in June in order to prevent more legal action.
Cruise decided to ground its fleet of cars nationally for a while. Additionally, the corporation suffered from widespread layoffs implemented by GM, which resulted in the departure of important executives like CEO Kyle Vogt.
Issues have continued, such with the August 2024 recall of over 1,200 cars due to abrupt braking. However, Cruise has brought monitored taxis back to the Bay Area of California, Dallas, and Phoenix. In regions that are compatible, Uber users will be able to hail Cruise robotaxis by 2025.
The competition to dominate robotaxis is only getting more fierce, despite safety concerns. Alphabet’s Waymo and Amazon’s Zoox are competitors of Cruise, and if development proceeds as planned, Tesla anticipates having its Cybercab operational by 2027.
