General Motors’ Cruise unit could face fines and sanctions over its failure to reveal details of an Oct. 2 accident by which a robotaxi dragged a pedestrian 20 feet after the pedestrian had been struck by one other vehicle, a California agency said.
The growing regulatory pressure could hamper GM and Cruise’s effort to rebuild trust and re-start operations in California after coming under fire for allegedly withholding information in regards to the crash in San Francisco.
Last month, Cruise paused all driverless and supervised automotive trips in america and expanded a security review of its robotaxis, and CEO Kyle Vogt and chief product officer Daniel Kan each stepped down.
The California Public Utilities Commission (CPUC) on Friday ordered Cruise to look at a Feb. 6 hearing for “misleading the Commission through omission regarding the extent and seriousness of the accident” and “making misleading public comments regarding its interactions with the commission.” The ruling was made by CPUC Administrative Law Judge and a Commissioner.
On Oct. 3, Jose Alvarado, a senior manager of presidency affairs at Cruise, telephoned commission analyst Ashlyn Kong and informed her of the collision, in response to the ruling. The outline “omitted that the Cruise AV had engaged within the pullover maneuver, which resulted within the pedestrian being dragged an extra 20 feet at 7 mph,” the documents said, using the abbreviation AV for autonomous vehicle.
Kong said in an announcement that GM’s blog posting that it “proactively” shared information with the commission “including the total video” is “inaccurate.”
“The total video was shared only in response to a knowledge request greater than two weeks after the incident,” she said.
“Cruise is committed to rebuilding trust with our regulators and can respond in a timely manner to the CPUC,” the corporate said in an announcement.
But GM investors said it’ll take time for Cruise to show around.
“I do not think there’s any expectation from our standpoint that that is going to be a one-, two-, three- and even six-month issue. It may be an extended time item for them to repair,” said portfolio manager Tim Piechowski at ACR Alpine Capital Research, which has a $290 million in investment in GM.
The commission didn’t propose a selected penalty. The commission has the authority to positive a public utility as much as $100,000 per day there may be a violation plus other penalties, in response to the judge’s order. It has an authority to impose regulatory sanctions including suspending or revoking any operating permit.
CPUC commissioners in August voted in favour of a plan by Cruise and Alphabet Inc’s Waymo to take paying passengers day or night throughout San Francisco, despite vigorous opposition from some residents and city agencies. Considered one of CPUC commissioners is John Reynolds, a former Cruise Managing Counsel who was appointed by Governor Gavin Newsom in 2021.
In October, California’s Department of Motor Vehicles barred Cruise self-driving vehicles from public roads following the accident.
Cruise’s troubles are also a setback for an industry depending on public trust and the cooperation of regulators. The corporate had in recent months touted ambitious plans to expand to more cities, offering fully autonomous taxi rides. GM had told investors Cruise and its technology could generate $50 billion a yr in revenue by 2030.
GM CEO Mary Barra said last week that the automaker will sharply cut spending on the unit next yr. Cruise has lost greater than $8 billion since 2017, including $728 million within the third quarter of this yr.
GM has hired an outdoor law firm to conduct a review of Cruise management’s handling of the Oct. 2 incident and the response to regulators. Cruise has also said it’s planning to re-launch in a single unspecified city before expanding to others.
By Dec. 18, GM is alleged to hand-deliver a “verified statement” which include facts and arguments regarding CPUC’s charges, all attachments, together with a three-ringed binder containing a replica of all authorities, to the executive judge.
This Article First Appeared At www.autoblog.com
