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How Cruise went from buzzy self-driving startup to ‘public safety risk’

Dec 18, 2023 - fastcompany.com
Cruise, the self-driving car company backed by General Motors, has faced a series of setbacks after a major incident in October 2021. The company, which had been granted permission to provide 24/7 passenger service in San Francisco, was involved in an accident where a driverless car hit and dragged a woman. This led to the California Department of Motor Vehicles suspending Cruise's permit due to public safety concerns. In response, Cruise halted all its driverless operations nationwide and initiated measures to restore public trust, including hiring third-party firms to review the incident and creating a chief safety officer role.

The fallout from the incident continued with the resignation of Cruise's founders, Kyle Vogt and Dan Kan, and the firing of nine key leaders. GM announced cost-cutting measures at Cruise, resulting in the layoff of nearly a quarter of its workforce. The company is also facing potential fines of $1.5 million and additional sanctions for allegedly misleading the commission about the seriousness of the accident and its interactions with the commission. A hearing is scheduled for February 6.

Key takeaways:

  • Cruise, a self-driving car company, has faced significant challenges following an incident in October where a driverless vehicle hit and dragged a woman in San Francisco, leading to the suspension of its permit to operate in the state.
  • The company has since made efforts to restore public trust, including hiring a third-party law firm to review the incident, creating a chief safety officer role, and voluntarily pulling all its driverless operations across the country.
  • Internal shake-ups have also occurred, with the resignation of founders Kyle Vogt and Dan Kan, the firing of nine key leaders, and the cutting of nearly a quarter of its workforce as part of cost-cutting measures by parent company GM.
  • Cruise is facing potential fines of $1.5 million and additional sanctions, and is ordered to appear at a hearing in February for allegedly misleading the commission about the extent and seriousness of the October accident.
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