Cruise overcomes a major obstacle to getting its robotaxis back on California roads

Cruise, the self-driving subsidiary of General Motors, has agreed to pay a $112,500 fine to settle a dispute with the California Public Utilities Commission (CPUC) over its handling of an accident involving one of its robotaxis last year. The settlement allows Cruise to move past the incident and potentially resume operations in the state.

The agreement brings closure to the issue, enabling CPUC staff to refocus on regulating Cruise rather than prolonging litigation. In response, Cruise expressed satisfaction with the settlement, emphasizing the company’s efforts to enhance leadership, processes, and corporate culture.

The incident in question occurred in October 2023 when a Cruise robotaxi was involved in an accident where a pedestrian was struck by a human-driven vehicle and subsequently hit by the robotaxi. The robotaxi inadvertently dragged the pedestrian while attempting a pullover maneuver. Cruise initially failed to disclose this critical information to CPUC and other regulators, leading to repercussions including the suspension of its permits for operating driverless vehicles in California.

Since then, Cruise has implemented corrective measures to address concerns raised by CPUC, including an internal investigation conducted by law firm Quinn Emanuel, restructuring for transparency, and changes in leadership such as the departure of former CEO Kyle Vogt.

The CPUC acknowledged Cruise’s efforts to rectify past shortcomings and committed to improved transparency in future communications. By swiftly resolving the dispute, Cruise avoided prolonged legal proceedings and positioned itself to resume operations under regulatory oversight.