In a recent third-party investigation report, issues pertaining to company culture, leadership shortcomings, and regulatory concerns have come to light within General Motors’ autonomous vehicle subsidiary, Cruise. The findings shed light on a series of events since October, following an incident involving a Cruise robotaxi in San Francisco.
The investigation, conducted by Quinn Emanuel Urquhart & Sullivan, a business law firm retained by GM and Cruise, aimed to address allegations of regulatory oversights and potential cover-ups. The report, spanning 105 pages, explores controversies surrounding Cruise since an October 2 accident, where a pedestrian was dragged by a Cruise robotaxi after being struck by another vehicle.
While the report highlighted widespread issues with company culture, it clarified that there was no evidence suggesting Cruise leadership intended to deceive or mislead regulators in the aftermath of the incident. Cruise remains under investigation by various entities, including the U.S. Department of Justice and the U.S. Securities and Exchange Commission.
The investigation revealed that Cruise representatives attempted to share a video of the incident with regulators, but technical issues hindered their efforts. Subsequently, there was a failure to adequately inform regulators of the entire sequence of events. Some employees also neglected to update or correct company statements, placing blame on the human driver involved in the hit-and-run.
Former CEO Kyle Vogt, who resigned in late November, was implicated in the report for making final decisions to withhold information, particularly from the media. The report attributes Cruise’s failings to poor leadership, judgment errors, lack of coordination, and a strained relationship with regulators.
Cruise’s autonomous vehicle fleet has been grounded since the incident, with ongoing investigations by local and federal authorities. The company has undergone significant leadership changes, with co-founders resigning, leaders ousted, and a workforce reduction of 24%.
Cruise acknowledged the findings of the report, emphasizing its commitment to act on recommendations and cooperate fully with ongoing investigations. The company faces inquiries from various entities, including the California DMV, California Public Utilities Commission, National Highway Traffic Safety Administration, U.S. Department of Justice, and U.S. Securities and Exchange Commission.
A separate investigation by engineering consulting firm Exponent Inc. aligned with Cruise’s analysis of the incident, pointing out a semantic mapping error. Cruise stated that it addressed underlying issues through a software update and initiated a voluntary recall in November.
Despite these challenges, Cruise remains committed to relaunching operations, focusing on rebuilding trust with regulators and addressing issues outlined in the report. Before the incident, Cruise, acquired by GM in 2016, was positioned as a leader in autonomous vehicles. GM, under CEO Mary Barra, expressed commitment to Cruise’s vision while acknowledging the need for full partnership with regulators and communities to move forward successfully. The Quinn Emanuel report affirms that Cruise’s actions fell short of expectations and were inconsistent with the company’s values.
