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GM Sues San Francisco Over $121M in Overpaid Taxes and Penalties

The lawsuit argues that Cruise, GM's self-driving car unit, operates separately and should not be factored into GM's tax obligations.

FILE – A logo of the General Motors is seen in Hamtramck, Mich., on Jan. 27, 2020. Auto workers walked off the job at three General Motors facilities in Canada early Tuesday, Oct. 23, 2023, after failing to reach agreement with the automaker. (AP Photo/Paul Sancya, File)
A General Motors Cruise self driving car in a San Francisco street
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Overview

  • General Motors has filed a lawsuit against the City of San Francisco, claiming it was overcharged $108 million in taxes and $13 million in interest due to its association with its self-driving car unit, Cruise.
  • GM argues that Cruise, which it purchased in 2016, operates separately and has different revenue models, and thus should not be factored into GM's tax obligations.
  • The lawsuit comes amidst recent challenges for Cruise, including the departure of nine executives and an ongoing investigation into a fatal incident involving one of its robotaxis in San Francisco.
  • In November, Cruise recalled all 950 of its self-driving systems and issued a software update in response to the incident.
  • Cruise's operations across all of its fleets were halted in late October after California suspended the company's permit to operate driverless vehicles in the state.