GM's Cruise gets more oversight after robotaxi towing incident

General Motors Co.'s robotaxi company will face stricter oversight and pay a fine to resolve claims by U.S. auto safety regulators for leaking information about an accident involving one of its cars that struck a pedestrian and was carried away, did not disclose it properly.

GM's Cruise LLC unit must pay a $1.5 million civil penalty, submit regular reports on self-driving car operations and meet quarterly with officials from the U.S. National Highway Traffic Safety Administration, according to a statement a consent order announced by the authority on Monday.

The enforcement action stems from an October 2023 incident in San Francisco in which a Cruise robotaxi dragged a pedestrian approximately 20 feet before coming to a complete stop. The pedestrian was seriously injured in the high-profile safety breach and resulted in Cruise's license to operate in California being revoked. The incident prompted Cruise to recall its automated driving system. NHTSA also initiated a defect investigation.

The agency said Monday that in two reports about the incident, Cruise failed to disclose post-accident details as required by the agency, in addition to “several incomplete reports” the company submitted to regulators.

“It is critical for companies developing automated driving systems to prioritize safety and transparency from the outset,” NHTSA Acting Administrator Sophie Shulman said in a statement.

Following the San Francisco incident, Cruise subsequently underwent a complete reboot of the company, with founder and chief executive officer Kyle Vogt resigning, nine executives laid off, and 25% of the workforce laid off.

“Our agreement with NHTSA is a step forward in a new chapter for Cruise and builds on our progress under new leadership, improved processes and culture, and a firm commitment to greater transparency with our regulators,” said Steve Kenner, Cruise Chief Safety Officer , in an interview statement.

Cruise recently resumed development work on public roads in California and is testing its cars with safety drivers in Texas and Arizona after its fleet was grounded following last year's pedestrian accident.

Top photo: A Cruise vehicle in San Francisco, California, U.S., on Wednesday, February 2, 2022. Cruise LLC, the self-driving car startup majority owned by General Motors Co., announced it is free is offering rides to non-employees for the first time in San Francisco, a move that raises an additional $1.35 billion for investor SoftBank Vision Fund.

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