Current:Home > reviewsGM's driverless car company Cruise is under investigation by several agencies -TrueNorth Finance Path
GM's driverless car company Cruise is under investigation by several agencies
View
Date:2025-04-15 13:53:15
The GM-owned driverless car company Cruise is under investigation by several federal agencies for an October crash that seriously injured a pedestrian.
The company on Thursday said it is being investigated by the National Highway Traffic Safety Administration, the U.S. Department of Justice, and the U.S. Securities and Exchange Commission, in addition to California agencies. Cruise said it is "fully cooperating" with the regulatory and enforcement agencies that have opened the investigations.
In the Oct. 2 crash, a vehicle struck a pedestrian and sent her flying into the path of the self-driving Cruise car. The Cruise vehicle then dragged the pedestrian for another 20 feet, causing serious injuries.
Cruise, which owns a fleet of robotaxis in San Francisco, then failed to adequately inform regulators of the self-driving vehicle's full role in the incident. Since then, Cruise's driverless ride-hailing services have been paused in all markets. The CEO resigned, along with other senior executives.
Cruise also hired outside law firm Quinn Emanuel Urquhart & Sullivan to investigate the incident.
In a scathing report, released Thursday, the law firm said Cruise's interactions with regulators revealed "a fundamental misapprehension" of the company's obligations to the public.
The company says it accepts the law firm's conclusions and is focused on "earning back public trust."
"Poor leadership" cited as one reason for the Cruise's failing
In its initial explanations of the crash to the public and to regulators, Cruise did not acknowledge that the robotaxi dragged the pedestrian. Instead, it focused on the fact that the collision was originally caused by another vehicle.
The law firm did not conclude that Cruise intentionally misled regulators. The report states that Cruise did attempt to play a full video for regulators that showed the pedestrian being dragged, but "internet connectivity issues" repeatedly caused the video to freeze. And instead of pointing out the video's significance, "Cruise employees remained silent, failing to ensure that the regulators understood what they likely could not see."
Letting a video "speak for itself" when the video couldn't even play didn't quite rise to the level of concealing the truth, the law firm concluded. But the report said it revealed a lot about Cruise's corporate culture.
"The reasons for Cruise's failings in this instance are numerous: poor leadership, mistakes in judgment, lack of coordination, an 'us versus them' mentality with regulators, and a fundamental misapprehension of Cruise's obligations of accountability and transparency to the government and the public," the law firm wrote.
veryGood! (1)
Related
- Average rate on 30
- The national debt hit a record high. Does that affect the average American wallet?
- How social media algorithms 'flatten' our culture by making decisions for us
- Who hosted the 2024 Emmy Awards? All about Anthony Anderson
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Ariana Grande Reveals Release Date of Her First Album in More Than 3 Years
- Hundreds protest and clash with police in a Russian region after an activist is sentenced to prison
- 'Had to do underwater pics': Halle Bailey gives fans first look into private pregnancy
- The company planning a successor to Concorde makes its first supersonic test
- Mike McCarthy will return as coach of the Dallas Cowboys after stunning wild-card loss
Ranking
- The Grammy nominee you need to hear: Esperanza Spalding
- 10-year-old boy from Maryland bitten by shark while on vacation in Bahamas, police say
- What are sacred forests?
- Get the Valentine’s Day Gifts You Actually Want by Sending Your Significant Other These Links
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Colorado funeral home owners apparently sought to cover up money problems by abandoning bodies
- UK leader Rishi Sunak tries to quell Conservative revolt over his Rwanda plan for migrants
- Virginia House panel advances perennial measure seeking to ban personal use of campaign funds
Recommendation
In ‘Nickel Boys,’ striving for a new way to see
BP names current interim boss as permanent CEO to replace predecessor who quit over personal conduct
Who hosted the 2024 Emmy Awards? All about Anthony Anderson
'All My Children' actor Alec Musser's cause of death revealed
Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
Freezing temperatures complicate Chicago’s struggles to house asylum-seekers
Quaker Oats recall list: See the dozens of products being recalled for salmonella concerns
Police search for drivers after pedestrian fatally struck by 3 vehicles in Los Angeles