🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

GM's self-driving Cruise unit to pay $112,500 for delaying crash report

Published 06/20/2024, 06:55 PM
Updated 06/21/2024, 03:31 PM
© Reuters. FILE PHOTO: A Cruise self-driving car, which is owned by General Motors Corp, is seen outside the company’s headquarters in San Francisco where it does most of its testing, in California, U.S., September 26, 2018.  Picture taken on September 26, 2018.
GM
-

(Reuters) -A California regulator said on Thursday it is imposing the maximum penalty of $112,500 on General Motors (NYSE:GM)' self-driving Cruise unit for the company's failure to promptly provide complete information to the commission about a serious crash involving one of its robotaxis last year.

WHY IT'S IMPORTANT

Cruise along with other self-driving vehicle companies like Alphabet (NASDAQ:GOOGL)'s Waymo and Amazon (NASDAQ:AMZN)'s Zoox have come under heavy scrutiny from regulators arising out of safety concerns due to multiple crashes involving their vehicles.

BY THE NUMBERS

Cruise will pay the maximum penalty allowable by the California Public Utilities Commission, totaling $112,500, which is $7,500 for each of the 15 days during which Cruise withheld information about the incident, the regulator said.

Cruise will also provide "collision reports" to the CPUC and the National Highway Traffic Safety Administration for collisions occurring in California.

WHAT CRUISE SAYS

"We are gratified to have reached a settlement with the CPUC. Over the past several months, we have taken important steps to improve our leadership, processes and culture," Cruise said.

CONTEXT

The decision by the California commission comes a few months after Cruise raised its offer to the maximum seeking to resolve the investigation.

On Oct. 2, a pedestrian hit by another vehicle was thrown into the path of a self-driving Cruise vehicle and dragged 20 feet. A person familiar with the matter said the woman suffered serious injuries, but was expected to survive.

© Reuters. FILE PHOTO: A Cruise self-driving car, which is owned by General Motors Corp, is seen outside the company’s headquarters in San Francisco where it does most of its testing, in California, U.S., September 26, 2018.  Picture taken on September 26, 2018.   REUTERS/Heather Somerville/File Photo

Cruise's permit to operate in California was suspended and the NHTSA issued a recall of its vehicles after the incident.

Cruise had resumed operations in the U.S. with a small fleet of human-driven vehicles in Phoenix, Arizona in April, but Cruise's authority to provide passenger service in its autonomous vehicles in California remains suspended.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.