Cruise could face massive penalties for pedestrian collision

Things just keep getting worse for General Motors’ self-driving taxi service Cruise.

The California-based company could be hit with huge fines from state regulators over allegedly hiding information about a pedestrian collision in October.

On Friday, the California Public Utilities Commission issued an order for Cruise to appear at a February hearing to provide evidence concerning its disclosure of data following the Oct. 2 accident. The commission believes the robotaxi firm failed to provide “complete information” on the incident and made “misleading public comments” in the aftermath.

The accident involved a Cruise vehicle that collided with a pedestrian who had been knocked into oncoming traffic by another vehicle driven by a human. The Cruise car came to a stop but then initiated a pull-over maneuver that resulted in the pedestrian being dragged under the car for 20 feet.

The agency claimed that Cruise provided an accurate account but left out the part about the passenger being dragged under the car until the agency asked for more information. Cruise provided a full video of the incident 15 days later.

If the February hearing finds that Cruise didn’t provide complete information, the company could face serious penalties. According to California law, the CPUC can fine public utilities up to $100,000 for each day there is a violation.

The fines are another blow to the struggling robotaxi company. Soon after the October incident, both the CPUC and the California DMV revoked all of Cruise’s permits to operate in the state, effectively killing the brand’s operations and expansion plans.

The company’s owner, GM, has since exerted more control over the company, installing its people in positions of authority at Cruise after its founder and CEO, Kyle Vogt, resigned. GM also announced it will slash Cruise’s budget for 2024 and work on rebuilding trust in the company.

The Cruise problems come at a pivotal moment for self-driving technology. As the auto industry reels from the cost of new union contracts and strikes, companies have begun scaling back certain plans like self-driving cars. On top of that, federal regulators have been clamping down on Tesla, one of the foremost innovators in the technology.