GM's Cruise gets more oversight after robotaxi dragging incident

General Motors Co.’s robotaxi company will undergo tougher oversight and pay a fine to settle claims by U.S. auto safety regulators that it failed to properly disclose information about a crash involving one of its cars that struck and dragged a pedestrian last fall.

GM’s Cruise LLC unit must pay a $1.5 million civil penalty, submit regular reports about its self-driving car operations and meet quarterly with U.S. National Highway Traffic Safety Administration officials, according to the terms of a consent order announced by the agency on Monday.

The enforcement action stems from an October 2023 incident in San Francisco in which a Cruise robotaxi dragged a pedestrian about 20 feet before coming to a complete stop. The high-profile safety lapse seriously injured the pedestrian and resulted in a suspension of Cruise’s license to operate in California. The incident prompted Cruise to recall its automated driving system. NHTSA also opened a defect investigation.

The agency on Monday said two reports Cruise provided about the incident failed to disclose post-crash details as required by the agency, in addition to “several incomplete reports” the company submitted to the regulator.

“It is vitally important for companies developing automated driving systems to prioritize safety and transparency from the start,” NHTSA Deputy Administrator Sophie Shulman said in a statement.

After the San Francisco incident, Cruise subsequently underwent a total reboot of the company, with founder and Chief Executive Officer Kyle Vogt resigning, nine executives being fired and a layoff of 25% of the staff.

“Our agreement with NHTSA is a step forward in a new chapter for Cruise, building on our progress under new leadership, improved processes and culture, and a firm commitment to greater transparency with our regulators,” Cruise Chief Safety Officer Steve Kenner said in a statement.

Cruise recently resumed development work on public roads in California and has been testing its cars with safety drivers in Texas and Arizona after grounding its fleet following the pedestrian incident last year.