General Motors’ Cruise Autonomous Unit Faces Regulatory Oversights and Coverup Concerns, Third-Party Probe Finds
General Motors’ Cruise autonomous vehicle unit has been under scrutiny since October due to regulatory oversights and coverup concerns, according to a third-party probe. The investigation revealed culture issues, ineptitude, and poor leadership within the company, which have contributed to the ongoing controversies surrounding Cruise.
The investigation focused on an incident that occurred on October 2, in which a pedestrian in San Francisco was dragged 20 feet by a Cruise robotaxi after being struck by another vehicle. The report examined whether Cruise representatives misled investigators or the media in their discussions about the incident. The findings, published in a 105-page report, highlighted widespread issues with the company’s culture but did not establish any intentional deception or misleading behavior by Cruise leadership or personnel.
Cruise is currently under investigation by various entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission. The report revealed that several Cruise leaders and employees attempted to show regulators a video of the incident but faced technical difficulties that prevented them from doing so in most initial meetings. However, the report also found that Cruise representatives failed to properly inform regulators and officials about the incident, leading to accusations of misleading behavior.
Former CEO and co-founder Kyle Vogt, who resigned in late November, made the final decisions to withhold information, particularly from the media, according to the report. The investigation conducted by Quinn Emanuel Urquhart & Sullivan, a business law firm hired by GM and Cruise, involved interviews with 88 Cruise employees and a review of over 200,000 documents.
Cruise has accepted the conclusions of the report and stated that it will act on all recommendations. The company is fully cooperating with investigations by state and federal agencies. Cruise’s robotaxi fleet has been grounded since the incident, and the company has undergone significant leadership changes, including the resignation of its co-founders and the dismissal of nine other leaders. Additionally, Cruise has laid off 24% of its workforce and a round of contractors.
The report emphasized that it was a flawed approach for Cruise or any other business to rely solely on a video of an accident to inform regulators, without providing all relevant facts. The investigation also revealed that the autonomous vehicle involved in the incident incorrectly classified the collision with the pedestrian, leading to an incorrect response from the vehicle.
Cruise vehicles remain grounded in the U.S., and the company is currently focused on rebuilding trust with regulators and addressing the issues outlined in the report. Prior to the incident, Cruise had plans for aggressive expansion of its robotaxi operations outside its home market. As a leader in autonomous vehicles, Cruise had garnered investments from companies like Honda Motor, SoftBank Vision Fund, Walmart, and Microsoft. However, GM acquired SoftBank’s equity ownership stake in Cruise in 2022.
GM CEO and Chair Mary Barra, who leads Cruise’s board, expressed the company’s commitment to rectifying the issues at Cruise. The Quinn Emanuel report did not directly reference Barra but mentioned GM several times. GM stated that Cruise’s actions following the incident were not consistent with the company’s values and fell short of expectations. The company remains dedicated to Cruise’s vision and believes that autonomous technology will ultimately save lives.
In conclusion, the third-party probe into General Motors’ Cruise autonomous vehicle unit has shed light on regulatory oversights and coverup concerns within the company. The investigation revealed culture issues, poor leadership, and mistakes in judgment that have led to accusations of misleading behavior. Cruise has accepted the findings of the report and is cooperating with investigations by state and federal agencies. The company is focused on rebuilding trust with regulators and addressing the issues outlined in the report. Despite the setbacks, GM remains committed to Cruise’s vision of autonomous technology and believes it will have a positive impact on road safety.
