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A third-party investigation into General Motors’ Cruise autonomous vehicle unit has exposed significant cultural and leadership issues, along with concerns of regulatory oversights and cover-ups since an October accident. The incident involved a Cruise robotaxi dragging a pedestrian in San Francisco, prompting a closer look at Cruise’s handling of the aftermath.
According to the 105-page report by Quinn Emanuel Urquhart & Sullivan, the law firm retained by GM and Cruise for the investigation, the problems identified include poor leadership, mistakes in judgment, a lack of coordination, and an “us versus them” mentality with regulators. The findings reveal an overall failure in Cruise’s obligations of accountability and transparency.
Despite these issues, the report concluded that there was no evidence suggesting Cruise leadership or personnel intentionally deceived or misled regulators. Cruise, however, remains under investigation by entities including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.
The incident on October 2 involved a pedestrian being dragged by a Cruise robotaxi after being struck by another vehicle. The investigation highlighted attempts by Cruise leaders and employees to show regulators a video of the incident. However, due to technical issues, they were only successful in one of several initial meetings. The subsequent failure to inform regulators properly and update company statements led to accusations of misleading behavior.
Former Cruise CEO and co-founder Kyle Vogt, who resigned in November, made final decisions to withhold information, specifically concerning media, according to the report. The findings indicate that the company had a flawed approach in assuming a video of the accident provided all necessary information to regulators.
Cruise’s robotaxi fleet has been grounded since the incident, and the leadership underwent significant changes, with co-founders resigning and other leaders ousted. The company laid off a portion of its workforce and is cooperating with investigations by various agencies.
Cruise said it accepts the conclusions of the report and will act on all recommendations. The company is committed to cooperating with ongoing investigations, including those by the California DMV, California Public Utilities Commission, National Highway Traffic Safety Administration, U.S. Department of Justice, and U.S. Securities and Exchange Commission.
The incident has significantly impacted Cruise’s operations and plans, with the company focused on rebuilding trust with regulators before relaunching its autonomous vehicle operations. The findings have also raised questions about the future trajectory of Cruise, which was once considered a leader in the autonomous vehicle space. GM, Cruise’s parent company, expressed its commitment to Cruise’s vision, emphasizing the need for collaboration with regulators and communities for a successful future.