Nine "key leaders" of General Motors' Cruise autonomous vehicle unit have been dismissed amid investigations surrounding safety protocols. According to Reuters, the measures were taken following an assessment of Cruise's reaction to a collision involving a robotaxi occurring on October 2. In late-October, Cruise put a stop to all of its road operations within the United States.
General Motors' Cruise autonomous vehicle unit has made the decision to release nine "key leaders" from their positions, a move prompted by on-going safety investigations that began in October with an accident in San Francisco. The dismissed individuals held positions in the company's legal, government affairs, commercial operations, and safety and systems teams. A company-wide message from GM and the Cruise spokespeople confirmed that the message was indeed authentic, and specified that it was "necessary" in order to restore trust and operate in a manner that "promotes the highest standards when it comes to safety, integrity, and accountability." The world of self-driving technology has been particularly difficult for commercial development, even more so than expected a few years ago. With such challenges in mind, the autonomous vehicle sector has gone through a process of consolidation, deemphasizing the once-hyped notion of the technology as a potential multitrillion-dollar industry for transportation companies. The news of the shakeup at Cruise, which was originally reported by Reuters, came after an initial review of the firm's reaction to an incident that took place on October 2, with one of the company's robotaxis striking a pedestrian and dragging them. Following the accident, the California Department of Motor Vehicles went so far as to suspend Cruise's deployment and testing permits in late October, at which point Cruise suspended their roadway operations in the U.S.
The company faces regulatory pressure and fines for potentially providing false or one-sided information regarding the accident. The National Highway Traffic Safety Administration and California Public Utilities Commission are conducting an investigation on Cruise and the incident. GM CEO Mary Barra, also serving as chair of Cruise, publicly announced in Detroit last week that the priority is to "right the ship" at Cruise. An external safety review is also in the works, which is due to be completed in the start of 2024. In an emailed statement Wednesday, GM noted that these personnel changes are a necessary measure to advance Cruise's commitment to accountability, credibility and transparency. This comes not too soon after Kyle Vogt and Dan Kan, Cruise's CEO and Chief Product Officer, respectively, offered their resignations. This has triggered a period of disapproval within the industry, as public faith and regulatory approval are essential for the growth of driverless transportation network. GM bought Cruise in 2016, with additional investors such as Honda Motor, SoftBank Vision Fund, Walmart, and Microsoft joining the venture. GM then purchased SoftBank's stake in the company for $2.1 billion last year. GM had plans for Cruise to expand to more cities, claiming to offer fully autonomous taxi rides. However, GM has expended more than $8 billion since 2016. The losses have been rising annually, with $1.9 billion through the third quarter of this year.
Comments