GM Cruise Under Investigation by DOJ and SEC for Dragging Pedestrian, Promises to Implement Reforms

GM’s Cruise self-driving car unit has reported investigations by the U.S. Justice Department and Securities and Exchange Commission following an accident in Austin, Texas, in which one of its robotaxis injured a pedestrian in October. A 195-page report by law firm Quinn Emanuel found that Cruise misled regulators in the aftermath of the accident, leading to the resignation of CEO Kyle Vogt over the mishandling of the incident. Since the accident, Cruise has fired nine executives, and the company has vowed to reform its corporate culture. In response, California suspended the company’s permission to operate autonomous vehicles in the state, and Cruise plans to return to testing on public streets despite facing heavy criticism. Executives will appear before the California Public Utilities Commission on Feb. 6 to address the situation and help the agency determine an appropriate fine. This investigation and the mishandling of the accident have also raised questions about the future of the robotaxi industry as a whole.