GM fires 9 execs at Cruise, may face $1.5 million in fines
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General Motors has fired “nine key people” at robotaxi company Cruise amid the fallout from an accident involving a pedestrian in San Francisco. The incident – and the uncovered details that have dealt a massive blow to an industry that relies on trust from the public and regulators – has already forced the company’s founder and CEO Kyle Vogt to resign.
In a new report from Reuters, GM confirmed that the list of execs on the chopping block included Cruise chief operating officer Gil West, chief legal and policy officer Jeff Bleich, and senior vice president of government affairs David Estrada.
“Following an initial analysis of the October 2 incident and Cruise’s response to it, nine individuals departed Cruise,” the memo, sent to Reuters, said.
“We are committed to full transparency and are focused on rebuilding trust and operating with the highest standards when it comes to safety, integrity, and accountability,” the memo said. “As a result, we believe that new leadership is necessary to achieve these goals.”
Last month, Cruise cofounder and CEO Kyle Vogt also announced his departure from the company with an apologetic email to staff, followed by a tweet that said, among other things, “Thanks for the great ride!” Prior to Vogt’s leaving, he announced a round of layoffs after pausing the company’s operation in response to the October incident when a Cruise robotaxi dragged a San Francisco pedestrian more than 20 feet before braking – the pedestrian was first hit by a human-driving car before being flung into the path of a Cruise vehicle.
California’s Department of Motor Vehicles quickly pulled Cruise’s operating permit, citing that the vehicles “are not safe for the public’s operation” and “misrepresentation” of the car’s technology. A few weeks later, Cruise paused all of its operations in other cities, including Austin, Houston, Dallas, Miami, and Phoenix. A federal probe and independent investigations also dug up internal documents that detailed the vehicle’s algorithm had trouble identifying children. Apparently, company staff were aware, yet its fleet of 950 robotaxis was still on the streets.
The company could face “$1.5 million in fines and additional sanctions over its failure to disclose details surrounding the accident,” according to Reuters.
GM has already been hemorrhaging money from its big bet on Cruise, having lost $1.9 billion on Cruise expenses between January and September this year, in addition to a $732 million loss in the third quarter. Since the accident, GM has stepped in to take a bigger role in leading the company, with the automaker’s general counsel Craig Glidden now co-president along with Cruise’s Mo Elshenawy.
