A report released on Thursday by Cruise, the driverless car subsidiary of General Motors, revealed that the company’s top executives had taken an adversarial approach towards regulators which led to a series of events, including a nationwide suspension of Cruise’s fleet and investigations by various California and federal authorities, including the Justice Department.
The 100-page report, compiled by a law firm hired by Cruise and G.M., looked into whether Cruise’s executives had misled California regulators about an October crash in San Francisco, where one of its vehicles dragged a woman 20 feet. The review found that while the executives had not intentionally misled state officials, they had failed to disclose key details about the incident.
The report revealed that the executives had let a video of the crash “speak for itself” in meetings with the regulators, rather than fully explaining how the incident had occurred. It also highlighted the executives’ focus on protecting Cruise’s reputation rather than providing a full account of the incident to the public and media.
As a result of the incident and subsequent investigations, Cruise’s operations have been largely shut down since October. In response, the company has pulled its driverless cars off the road across the country, laid off a quarter of its staff, and replaced its CEO, Kyle Vogt, who resigned in November.
In an effort to rebuild public trust and eventually restart its business, Cruise has released the report to the D.M.V. and the California Public Utilities Commission, authorizing driverless car programs in the state. The report is also intended to be made available to the public.
Cruise’s troubles have raised concerns not only among regulators, but also among tech and auto companies that have invested in developing driverless car technology. In the absence of Cruise, Waymo, which was started by Google, has become the only self-driving car operation offering taxi rides in San Francisco. The report also signals a growing trend where tech companies are hiring law firms to review their business practices.
In response to the Oct. 2 crash in San Francisco, Cruise has faced criticism for its approach to handling the incident. The report revealed that the leadership team and personnel did not explain that a technical problem had caused the car to drag the pedestrian after she was struck. Instead, Cruise shared an abbreviated version of the video with the D.M.V., omitting footage of the car dragging the woman.
In an effort to address the issue, G.M. has stepped in to take a more active role in Cruise’s operations. The company has installed its general counsel, Craig Glidden, as president of Cruise to help oversee the investigation and evaluate how the business should proceed.
As Cruise continues to navigate through this challenging period, the report represents a key step in the company’s efforts to regain public trust and resolve the issues that have impacted its operations. The outcome of the investigations and how Cruise adapts its business practices in response will be closely watched by those involved in the future of driverless cars.