Cruise CEO Resigns After Safety Crises Ground Robotaxi Fleet
Kyle Vogt steps down as head of General Motors' self-driving unit Cruise following a series of pedestrian accidents and regulatory crackdowns. Despite the turmoil and billions in losses, GM remains committed to its autonomous vehicle ambitions.
Kyle Vogt resigns as the CEO of General Motors' self-driving car unit Cruise following severe safety setbacks. His departure comes just a day after he apologizes to employees for the problems that trigger swift action from state and federal regulators. This marks a dramatic fall for the company, which wins approval for 24/7 driverless taxi operations in San Francisco just three months prior.
The company essentially halts its nationwide robotaxi service at the end of October after a horrific incident in San Francisco. In that October 2 accident, a human-driven car strikes a pedestrian, and a Cruise vehicle subsequently traps and drags the victim for 20 feet. The National Highway Traffic Safety Administration subsequently launches a formal safety probe into Cruise vehicles, and California authorities revoke the company's right to operate driverless cars in the state.
Despite this massive turmoil and a staggering $5.9 billion in pre-tax losses since 2020, GM insists it is sticking with Cruise and its autonomous vehicle goals. The automaker's steadfast commitment contrasts sharply with competitors like Ford and Volkswagen, which abandoned their own self-driving joint venture last year due to doubts about near-term financial viability. Cruise currently continues limited operations with human safety drivers present in the vehicles.