Two months ago, Kyle Vogt, the CEO of Cruise, a subsidiary of General Motors, expressed his emotional response to a tragic incident involving a driver killing a 4-year-old girl in San Francisco. Vogt argued that self-driving cars, like those developed by Cruise, could make streets safer as they do not get distracted, drowsy, or drunk. However, Cruise is now facing its own safety concerns after a driverless taxi hit and severely injured a woman in San Francisco.
Last week, California’s Department of Motor Vehicles accused Cruise of omitting crucial information about the incident from a video provided to the agency, leading them to claim that the company “misrepresented” its technology. As a result, Cruise was instructed to suspend its driverless car operations in the state. Two days later, Cruise voluntarily suspended all driverless operations across the country, temporarily taking 400 driverless cars off the road.
In response to the incident, Cruise’s board has hired a law firm and a consulting firm to investigate the company’s actions and assess any necessary changes. Industry insiders are blaming a tech industry culture, led by Kyle Vogt, that prioritized the speed of the program over safety. Vogt aimed to dominate the driverless car market in a similar way Uber dominated the ride-hailing market.
In a companywide meeting, Vogt acknowledged that Cruise had lost the public’s trust and outlined plans to rebuild it through increased transparency and emphasis on safety. He appointed the company’s vice president of safety as the interim chief safety officer, who will report directly to him.
G.M. expressed its commitment to Cruise despite the challenges, stating that it believes in the company’s mission and technology and supports its efforts to prioritize safety.
Kyle Vogt has been involved in the self-driving car industry since a young age and founded Cruise Automation in 2013. G.M. acquired the company three years later for $1 billion. Vogt became Cruise’s president and chief technology officer, and in 2021, he assumed the role of CEO.
Cruise’s aggressive expansion plans have faced setbacks due to accidents and pressure from city officials and activists. Amidst the suspension of operations, concerns have arisen about the financial burdens on G.M. and the potential damage to its reputation.
Cruise’s revenue goals for 2025 may be affected by the shutdown, and G.M. may need to inject more funds into the business to cover its increasing costs. The shutdown has also impacted Cruise’s extensive operations staff, as well as the cities where its cars were active.
Source: The New York Times
