According to GM Cruise latest news, Cruise has come under fire after admitting to submitting a false report to federal regulators regarding a severe crash involving one of its autonomous vehicles. This disclosure came with a deferred prosecution agreement and a hefty $500,000 fine.
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In October 2023, a Cruise-operated robotaxi was involved in a serious accident in San Francisco. The incident occurred when a human-driven vehicle struck a female pedestrian.
The robotaxi hit the pedestrian and also dragged her for approximately 20 feet.
Cruise filed a report with the National Highway Traffic Safety Administration following the accident. Crucially, the report omitted the fact that the pedestrian had been dragged under the robotaxi. This omission led to allegations that Cruise was trying to impede the investigation into the crash.
According to GM Cruise latest news, to resolve the criminal charge of submitting a false report, Cruise entered into a three-year deferred prosecution agreement. The company has admitted its wrongdoing and accepted responsibility for the omission.
As Part of the Agreement, Cruise will:
- Pay a $500,000 fine.
- Cooperate with government investigations.
- Implement a safety compliance program.
- Provide annual reports to the U.S. Attorney’s Office.
If Cruise fails to meet its obligations under the agreement, federal prosecutors have the authority to proceed with prosecution for the original offense.
Cruise’s CEO and co-founder, Kyle Vogt along with chief product officer Dan Kan resigned. The company terminated nine executives including its chief operating officer and chief legal and policy officer. A quarter of Cruise’s workforce was laid off.
According to GM Cruise latest news, General Motors settled with the injured pedestrian for at least $8 million. Cruise agreed to pay a $1.5 million fine to the NHTSA in September for failing to disclose all post-crash details.
This fine was with an order to develop a corrective action plan to improve compliance with incident reporting standards.
Following California’s suspension of Cruise’s operational permit in late 2023, the company halted its robotaxi services nationwide.
According to GM Cruise latest news, Cruise has resumed supervised autonomous driving testing in three US cities. It abandoned its Origin vehicle design, which lacked human controls.
Plans to launch Cruise vehicles on Uber’s ride-hailing platform in 2025 remain intact.
NHTSA is still investigating Cruise’s safety protocols. Cruise vehicles have faced previous issues including hard-braking problems that prompted the recall of 1,200 robotaxis in August 2024.
The US Securities and Exchange Commission has also launched an investigation into Cruise.
According to GM Cruise latest news, Cruise agreed to a $500,000 criminal fine as part of a deferred prosecution agreement with the US Attorney’s Office. The company had previously agreed to a $1.5 million penalty with NHTSA in September 2024 for compliance failures.
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GM reportedly reached a settlement with the injured pedestrian for at least $8 million, according to Reuters.
Under the agreement, Cruise must implement a Safety Compliance Program and submit annual reports for three years to avoid prosecution. Cruise faces reporting requirements and must submit a corrective action plan to NHTSA.
According to GM Cruise latest news, the California Department of Motor Vehicles suspended Cruise’s permits for autonomous vehicle deployment and testing without a driver.
Executives including CEO and co-founder Kyle Vogt resigned. Nine other senior officials including the Chief Operating Officer and Chief Legal and Policy Officer were fired. Cruise laid off approximately 25% of its workforce.
Cruise resumed supervised manual driving in Phoenix and later in Houston and Dallas to collect road data. The company is now exploring a gradual return to driverless operations in select US cities by the end of 2024.
Cruise abandoned its Origin autonomous vehicle designed without pedals or a steering wheel. Instead, the company is focusing on using its next-generation Chevrolet Bolt for autonomous operations.
According to GM Cruise latest news, Cruise reported an operating loss of $417 million in Q3 2024, down from $807 million during the same period in 2023. GM has spent $583 million on restructuring the unit this year.
Cruise has partnered with Uber to integrate its autonomous vehicles into the ride-hailing platform, expected to begin in 2025.
NHTSA continues to scrutinize whether Cruise’s safety measures adequately protect pedestrians. In August, Cruise issued a recall of 1,200 robotaxis due to hard braking issues.
According to GM Cruise latest news, the Securities and Exchange Commission is also investigating Cruise, though the specifics remain undisclosed.
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