GM's Cruise Offers $75K Settlement To Wrap Up Regulatory Probe Into San Francisco AV Accident

General Motors Co‘s GM autonomous driving unit, Cruise, has reportedly proposed a $75,000 settlement to address an ongoing investigation related to an accident involving one of its autonomous vehicles in San Francisco.

What Happened: In December, an administrative law judge and commissioner from the California Public Utilities Commission ordered Cruise to appear at a hearing on Feb. 6. The commission alleges that Cruise failed to provide “complete information” and made “misleading public comments” about the Oct. 2 accident in San Francisco.

However, Cruise has requested a deferral of the hearing, as reported by Reuters, citing a filing. The company, represented by the law firm Quinn Emanuel, aims to complete its investigation before Feb. 6. Cruise has also offered to enhance its collision reporting to the commission.

Accident And Subsequent Events: In the October incident, a human-driven vehicle collided with a pedestrian adjacent to a Cruise AV, propelling the pedestrian across the vehicle and onto the ground in the AV’s path. The AV made contact with the pedestrian, pulling them forward approximately 20 feet.

Following the accident, Cruise halted its autonomous vehicle operations in San Francisco on the directive of the California Department of Motor Vehicles (DMV). The DMV suspended Cruise’s autonomous vehicle deployment and driverless testing permits, citing an “unreasonable risk” to public safety and alleging misrepresentation of information regarding the safety of its autonomous technology.

Cruise also suspended operations in Austin, Phoenix, and Houston. In early November, the company announced a pause in supervised and manual AV operations across the U.S., aiming to rebuild public trust and undergo a comprehensive safety review.

In November, Cruise CEO Kyle Vogt stepped down, and GM announced cost-cutting measures for the unit. In the third quarter, Cruise reported an EBIT-adjusted loss of $732 million, a 47% increase from $497 million a year earlier.

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