General Motors’ Cruise Autonomous Vehicle Unit Dismisses Key Leaders Amid Safety Investigations
General Motors’ Cruise autonomous vehicle unit has dismissed nine “key leaders” amid ongoing safety investigations sparked by an October accident in San Francisco, according to an internal message obtained by CNBC. The departures include leaders from Cruise’s legal, government affairs, commercial operations, and safety and systems teams.
Challenges in the Self-Driving Vehicle Industry
Commercializing autonomous vehicles has been more challenging than anticipated, leading to a consolidation in the industry. The difficulties faced by Cruise are the latest in a series of setbacks for the self-driving vehicle sector.
The shakeup at Cruise follows an analysis of the company’s response to an accident involving one of its robotaxis. The incident resulted in the suspension of Cruise’s deployment and testing permits by the California Department of Motor Vehicles.
Regulatory Pressure and Fines
Cruise also faces regulatory pressure and potential fines for potentially misleading or withholding information about the accident. The National Highway Traffic Safety Administration and California Public Utilities Commission are currently investigating the incident.
GM’s Commitment to Cruise
GM CEO Mary Barra, who serves as chair of Cruise, stated that the company is focused on addressing the issues at Cruise. The company is conducting two external safety reviews to guide its path forward. These reviews are expected to be completed in early 2024.
“The personnel decisions made today are a necessary step for Cruise to move forward as it focuses on accountability, trust, and transparency. GM remains committed to supporting Cruise in these efforts,” GM said in a statement.
Setback for the Industry
The departures at Cruise are a setback for an industry that relies on public trust and cooperation from regulators. Cruise had ambitious plans to expand to more cities and offer fully autonomous taxi rides.
GM’s Investment in Cruise
GM purchased Cruise in 2016 and has invested significant resources in the company. However, Cruise has cost GM over $8 billion since the acquisition, with losses increasing annually. GM executives had hoped that Cruise would play a significant role in doubling the company’s revenue by 2030.
