Cruise, the standalone subsidiary of General Motors, has agreed to pay a $112,500 fine for failing to provide full information about an accident involving one of its robots last year. The resolution with the California Public Utilities Commission (CPUC) not only avoids litigation, but puts Cruise in a position to restart operations in the state.
The settlement agreement “bears[s] that dispute is over” allowing Commission staff “to devote their resources to the regulatory oversight of Cruise rather than engaging in potentially protracted litigation,” the ruling said. In an emailed statement, Cruise said the company is “pleased” to reach an agreement, noting that the company has taken “significant steps to improve our leadership, processes and culture.”
Cruise received backlash in October 2023 when a Cruise robotaxi ran over a pedestrian who had fallen into its path after being hit by a human-driven vehicle. The robotaxi then dragged the pedestrian 20 feet as it tried to maneuver in a sweater, a fact that Cruise staff did not immediately share with the CPUC and other state and federal regulators when they investigated the company. This withholding of information resulted in both the CPUC and the California Department of Motor Vehicles removing Cruise’s licenses to operate driverless vehicles in the state.
Since then, Cruise has implemented a series of “remedial measures” that appear to have satisfied many of the CPUC’s concerns about the company’s continued operation of autonomous vehicles. The agency’s decision refers to actions Cruise has taken, including retaining the law firm Quinn Emanuel to conduct an internal investigation of Cruise’s business structure, creating a more transparent corporate function and prompting the departure of staff such as former CEO Kyle Vogt.
The commission noted that Cruise has taken responsibility for its past failures and promises to be more transparent with the service in the future. Cruise also seems to score points for seeking to “resolve this dispute expeditiously,” rather than letting the matter go through the costly and time-consuming circuit of rulings, appeals and retrials.
“We conclude that by taking these corrective actions, Cruise is moving toward restoring public trust by making itself a more transparent and cooperative entity that will not withhold material information from regulatory agencies that oversee its AV transportation services,” the ruling said .
As part of the agreement, Cruise is also required to regularly share incident information with the CPUC. This includes increased crash reports as well as monthly incident reports involving stalled AVs that must be physically recovered from the field.
Prior to the infamous Oct. 2 incident, Cruise had also been criticized by members of the public, politicians and law enforcement agencies because his robot taxi had a bad habit of malfunctioning in the middle of traffic.
Cruise is slowly returning to public roads in other states that have less red tape. Since April, the AV company has deployed small fleets of human safety operators behind the wheel in Phoenix, Houston and Dallas to map and restart testing.
Cruise may follow a similar path in California, where competitor Waymo is quickly gaining ground. The DMV suspended Cruise’s licenses to test and develop vehicles without a human driver in the front seat, and the CPUC suspended Cruise’s licenses to charge for any such service. But Cruise still has an active license with the DMV to test its vehicles with a safety driver, something the company can lean on as it tries to close its latest chapter and move on.
A spokesperson for the company told TechCrunch that Cruise is committed to rebuilding trust with regulators, officials and communities in San Francisco, Cruise’s hometown, and everywhere it has operated in the past. Both the DMV and Cruise have confirmed that the company has taken steps to restore its other licenses, but have not shared any other updates or a timeline. A Cruise spokesperson said DMV permits are a prerequisite to reapplying for CPUC permits.
The CPUC did not respond to TechCrunch’s inquiry as to whether the agency is preparing to re-approve any of Cruise’s licenses.
