Following a serious incident in San Francisco, General Motors’ driverless car subsidiary, Cruise, faces challenges as it slowly resumes operations with a focus on safety and rebuilding trust. Despite setbacks and executive turnover, the company aims to regain its position in the autonomous vehicle industry through cautious steps and regulatory engagements.
The Slow Restart of G.M.’s Cruise Driverless Car Business
General Motors’ driverless car subsidiary, Cruise, is grappling with a serious challenge following an incident on October 2, 2023, when one of its autonomous vehicles hit and dragged a pedestrian for 20 feet in San Francisco, causing severe injuries. This led to the California Department of Motor Vehicles suspending Cruise’s license in the state after accusations of omitting critical details of the incident from a video provided to the agency.
In the aftermath, Cruise ceased all operations nationwide in November 2023 amid widespread criticism. The company also saw significant executive turnover, including the resignation of its chief executive, Kyle Vogt, and laid off 25% of its workforce.
Currently led by Craig Glidden, Mo Elshenawy, and Steve Kenner, Cruise is prioritizing safety in its operations. The company has resumed testing with human drivers in Phoenix as of April 2024 and transitioned to supervised autonomous testing in May 2024. These steps are being taken cautiously to rebuild trust and ensure safety.
Cruise’s setbacks have left it trailing behind competitors like Waymo and Zoox. Despite losing $3.48 billion in 2023, G.M.’s chief executive, Mary T. Barra, remains committed to the subsidiary, emphasizing the need for outside investments to fund future efforts. The next steps for Cruise include navigating regulatory approvals and further enhancing its technology to handle complex driving scenarios effectively.
It remains uncertain if or when Cruise will regain its permit for driverless testing in California, but the company continues to engage with regulators across multiple states. The goal is to offer a driverless ride-hailing service in one city by the end of 2024, with supervised operations in fewer than five cities.
Whether these efforts will restore confidence in Cruise is still an open question as the company works to address past safety concerns and regain its standing in the autonomous vehicle industry.
