Cruise Fined $1.5 Million Over Pedestrian Crash: A New Chapter?

General Motors' self-driving car unit Cruise will pay a $1.5 million fine for failing to disclose details of a serious 2023 crash involving a pedestrian. Cruise faces ongoing investigations by the Justice Department and SEC, and has agreed to stricter reporting requirements. The company's CEO resigned following the incident.

On Monday, the National Highway Traffic Safety Administration announced that General Motors' self-driving car unit Cruise is to pay a $1.5 million fine after failing to disclose details of a severe October 2023 pedestrian crash. As part of the settlement, Cruise will need to submit a corrective action plan and face enhanced reporting requirements for at least two years.

Cruise is also under investigation by the Justice Department and the Securities and Exchange Commission after one of its autonomous taxis in San Francisco struck and dragged a pedestrian for 20 feet. Reports revealed Cruise employees tried to prevent the NHTSA from opening an investigation and omitted critical details regarding the crash.

Steve Kenner, Cruise Chief Safety Officer, stated that the agreement marks a new chapter for the company, emphasizing improved processes, leadership, and transparency. NHTSA noted that Cruise submitted several incomplete reports concerning the October crash and other incidents, prompting the need for closer scrutiny of the company's safety practices.

In addition to the fine and ongoing investigations, Cruise recalled 1,200 robotaxis due to braking issues. General Motors also indefinitely suspended plans to use a self-driving vehicle without a steering wheel. Following the accident, Cruise's CEO resigned, and the California Public Utilities Commission fined Cruise $112,500 for failing to provide complete crash details promptly.