Cruise, a subsidiary of General Motors, has agreed to pay a $112,500 fine for failing to provide complete information about an accident involving one of its robotaxis last year. the Colony With the California Public Utilities Commission (CPUC) not only avoids litigation, but puts Cruz in a position to restart operations in the state.
Settlement Agreement “brought[s] “This dispute has come to an end,” allowing commission staff to “dedicate their resources to regulatory oversight of Cruz rather than engaging in potentially protracted litigation,” the ruling said. In an email statement, Cruz said the company was “grateful” to have reached a settlement, noting that the company had taken “important steps to improve our leadership, operations and culture.”
Cruz received backlash in October 2023 after a Cruz robotaxi ran over a pedestrian who rushed into its path after being struck by a human-driven vehicle. The robot then dragged the pedestrian 20 feet as it attempted to maneuver the vest, a fact Cruise employees did not immediately share with the CPUC and other state and federal regulators when they investigated the company. Withholding information led both the CPUC and the California Department of Motor Vehicles to revoke Cruz’s permits to operate self-driving vehicles in the state.
Since then, Cruise has implemented a series of “corrective actions” that appear to have satisfied many of the CPUC’s concerns about the company’s continued operations of self-driving vehicles. The agency’s ruling cites actions taken by Cruz, including retaining law firm Quinn Emanuel to conduct an internal investigation into Cruz’s operational structure, creating a more transparent corporate process and instigating the departures of employees such as former CEO Kyle Vogt.
The Commission noted that Cruz took responsibility for his past failures and promised to be more transparent with the agency in the future. Cruz also appears to get big points for seeking to “resolve this dispute expeditiously,” rather than letting the matter go through a series of expensive and time-consuming decisions, appeals, and hearings.
“We conclude that by taking these corrective actions, Cruise is on track to regain public trust by positioning itself as a more transparent and cooperative entity that will not hide material information from regulatory agencies that oversee autonomous vehicle transportation services,” the ruling said.
As part of the agreement, Cruise is also required to regularly share accident information with the CPUC. This includes an increase in collision reports as well as monthly reports of accidents involving parked autonomous vehicles that must be physically retrieved from the field.
Before the famous October 2 incident, Cruz had also been criticized by members of the public, politicians and law enforcement agencies because the robo-taxi had a bad habit of malfunctioning in the middle of traffic.
Cruises have slowly returned to public roads in other states that have less regulation. Since April, AV has deployed small fleets with human safety operators behind the wheel in Phoenix, Houston and Dallas to map and restart testing.
Cruise may take a similar path in California, where rival Waymo is rapidly gaining ground. The DMV suspended Cruise’s permits to test and deploy vehicles without a human driver in the front seat, and the CPUC suspended Cruise’s permits to charge for any such service. But Cruise still has an active permit from the DMV to test its vehicles with a safe driver, something the company may rely on as it tries to close the final chapter and move forward.
A company spokesperson told TechCrunch that Cruise is committed to rebuilding trust with regulators, officials and communities in San Francisco, Cruise’s hometown, and everywhere she has previously operated. Both the DMV and Cruise confirmed the company has taken steps to reinstate its other permits, but did not share any other updates or timeline. A spokesperson for Cruise said DMV permits are a necessary condition to reapply for CPUC permits.
The CPUC did not respond to TechCrunch’s inquiry if the agency was preparing to reapproval any of Cruise’s permits.