GM’s Cruise replaces top executives following a robotaxi incident
OAN’s James Meyers
8:47 AM – Thursday, December 14, 2023
General Motors (GM) Cruise autonomous vehicle unit has dismissed nine “key leaders” due to ongoing safety investigations.
The leaders were a part of Cruise’s legal, government affairs, commercial operations and safety and system teams, according to the company-wide message.
The safety investigations were started due to an October accident in San Francisco, involving one of Cruise’s robotaxis, which dragged a pedestrian after the person was struck by another vehicle.
After the accident, the California Department of Motor Vehicles suspended the deployment and testing permits for its autonomous vehicles in late-October. Cruise responded by pausing all roadway operations throughout the United States.
Additionally, the company is facing pressure and fines for allegedly misleading or withholding details about the accident in San Francisco.
Meanwhile, the National Highway Traffic Safety Administration and California Public Utilities Commission are probing Cruise and the accident.
GM CEO Mary Barra, said last week the company is “very focused on righting the ship” at Cruise. This includes two ongoing safety reviews that are expected to be completed in early 2024, Barra said.
“The personnel decisions made today are a necessary step for Cruise to move forward as it focuses on accountability, trust and transparency. GM remains committed to supporting Cruise in these efforts,” GM said in an emailed statement Wednesday.
The slashing of the workforce comes after a month ago Cruise CEO and co-founder Kyle Vogt and Chief Product Officer Dan Kan both resigned.
Furthermore, GM purchased Cruise in 2016 and brought on investors such as Honda Motor, Vision Fund, Walmart and Microsoft.
According to Barra, the acquisition of Cruise was in hopes to double GM’s revenue by 2030.
However, Cruise has actually cost GM over $8 billion since the company acquired it in 2016, according to public filings. Through the third quarter this year they reported that the company lost an additional $1.9 billion.
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How does the dismissal of key leaders at Cruise demonstrate the company’s commitment to addressing safety concerns?
SoftBank Group, and T. Rowe Price. The autonomous vehicle unit has been a key focus for General Motors as it looks to establish itself as a leader in the self-driving technology market.
The dismissal of nine key leaders at Cruise comes as a result of ongoing safety investigations. The leaders were part of various departments within the company, including legal, government affairs, commercial operations, and safety and system teams. The decision to dismiss these leaders highlights Cruise’s commitment to addressing safety concerns and ensuring accountability within the organization.
These safety investigations were initiated following an accident in October involving one of Cruise’s robotaxis in San Francisco. The incident resulted in a pedestrian being struck by another vehicle and subsequently dragged by the robotaxi. In response to the accident, the California Department of Motor Vehicles suspended Cruise’s deployment and testing permits for its autonomous vehicles. Cruise responded by halting all roadway operations across the United States.
Moreover, Cruise is also facing pressure and potential fines for allegedly providing misleading or withholding information about the San Francisco accident. The National Highway Traffic Safety Administration and the California Public Utilities Commission are currently conducting investigations into Cruise and the incident.
GM CEO Mary Barra expressed the company’s dedication to addressing the safety concerns at Cruise. Barra stated that two safety reviews are currently underway and are expected to be completed by early 2024. The personnel decisions made by Cruise are seen as a necessary step towards establishing accountability, trust, and transparency within the organization.
General Motors remains committed to supporting Cruise as it navigates through these challenges. The company believes that these personnel changes, along with the ongoing safety investigations, will enable Cruise to move forward and focus on its goals.
It is worth noting that the leadership shake-up at Cruise follows the recent resignations of its CEO and co-founder, Kyle Vogt, and Chief Product Officer, Dan Kan. Despite these changes, General Motors still sees Cruise as a strategic investment and continues to support its growth in the autonomous vehicle market.
In conclusion, the dismissal of key leaders at Cruise demonstrates the company’s commitment to addressing safety concerns and ensuring accountability within the organization. With ongoing safety investigations and changes in leadership, Cruise aims to regain trust and transparency as it continues to develop self-driving technology. General Motors remains dedicated to supporting Cruise in its endeavors, acknowledging the importance of Cruise’s role in the future of autonomous vehicles.
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