Cruise, the autonomous-vehicle unit of General Motors, has recently announced the dismissal of nine “key leaders” in response to an October crash in San Francisco that resulted in a pedestrian being critically injured.
A Change in Leadership
In a statement released on Wednesday, Cruise revealed that several individuals holding positions in legal, government affairs, commercial operations, and safety and systems have left the company. The decision to let go of these key leaders reflects Cruise’s commitment to transparency and their determination to rebuild trust, while operating with the highest standards of safety, integrity, and accountability.
Departure of Co-founder and CEO
The departure of these leaders follows the resignation of Cruise’s co-founder and CEO, Kyle Vogt, who stepped down in the aftermath of the crash.
Initial Analysis Findings
Cruise stated that these recent changes come after an “initial analysis” of the incident on October 2nd. The incident involved a Cruise driverless vehicle running over a pedestrian who had initially been struck by another vehicle, resulting in the pedestrian being dragged approximately 20 feet. As a consequence, California regulators suspended Cruise’s license to operate in the state and accused the company of attempting to conceal the severity of the incident. This covers up could potentially lead to a $1.5 million fine.
Suspension of Operations and Independent Investigation
Following the crash, Cruise halted all operations on public roads in the United States. Additionally, the company announced plans for an independent, third-party investigation into the incident. Previously, Cruise had been granted permission to run driverless taxis in San Francisco and had been operating driverless cars in Austin, Dallas, Houston, and Phoenix.
Financial Setbacks
Even prior to the crash, Cruise had been accumulating losses for General Motors. In GM’s most recent earnings report released in October, it was reported that Cruise incurred a $1.9 billion loss between January and September, with $732 million in losses in the third quarter alone.
Future Plans for Cruise
While GM remains committed to Cruise, CEO Mary Barra announced in late November that the automaker intends to significantly reduce spending on Cruise in 2024. Moreover, plans for the Origin driverless taxi have been scaled back.
Cruise’s dismissal of key leaders and their dedication to transparent operations and safety mark a pivotal moment in their efforts to regain trust and credibility in the autonomous vehicle industry.
