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GM's Cruise Under Federal Investigation Following Robotaxi Accident

Cruise admits to numerous failings in handling of incident that led to suspension of its license and nationwide halt of operations.

  • General Motors' Cruise self-driving car unit is under investigation by the U.S. Department of Justice and the Securities and Exchange Commission following an accident in October 2023 where one of its robotaxis dragged a pedestrian 20 feet.
  • Cruise has admitted to numerous failings in its handling of the incident, including poor leadership, mistakes in judgment, lack of coordination, and a 'us versus them' mentality with regulators.
  • A report commissioned by Cruise found that the company did not intentionally mislead regulators, but failed to volunteer crucial details about the incident.
  • Cruise's license to operate its driverless fleet in California was suspended by regulators following the incident, and the company has since halted all operations nationwide.
  • The incident has led to significant changes within Cruise, including the resignation of its CEO and co-founder, the firing of nine executives, and the layoff of nearly a quarter of its workforce.
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