California Judge Urges GM's Cruise To Raise Settlement Offer By 1.5x In Robotaxi Accident Case

General Motors GM autonomous vehicle division, Cruise, was urged to increase its settlement offer in a California hearing about a severe accident involving one of the company’s autonomous taxis.

What Happened: According to a report by Teslarati, a Cruise self-driving vehicle was involved in a serious accident with a pedestrian in San Francisco in October last year. The incident led to the immediate suspension of Cruise’s license to operate autonomous vehicles by the California Department of Motor Vehicles (DMV). The DMV later accused Cruise of withholding and misrepresenting crucial details about its response to the accident.

During a hearing on Tuesday, California Administrative Law Judge Robert Mason III suggested that Cruise should increase its settlement offer to the maximum penalty of $112,500. He referred to Cruise’s proposed amount as “low” and hinted that the company was seeking a “discount.”

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After the hearing, the next step is for Judge Mason to draft a proposed decision on the case for the commissioner's consideration, typically within about 60 days, as clarified by a CPUC spokesperson to Teslarati.

Despite Cruise’s eagerness to resolve the case and move on from the incident, Judge Mason indicated that the commission was not in a rush to dismiss the case.

Why It Matters: Cruise last month had proposed a $75,000 settlement to address the ongoing investigation into the accident. The company had also offered to enhance its collision reporting to the commission.

Meanwhile, Alphabet Inc.'s autonomous driving subsidiary, Waymo, is preparing to launch its complete range of robotaxis in Los Angeles, despite regulatory hurdles. 

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