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GM’s Cruise faces $1.5M in fines for failing to disclose accident details

Regulatory pressure may hinder GM and Cruise from resuming operations in California after being accused of hiding information about the San Francisco tragedy.

Cruise, the autonomous robotaxi arm of General Motors, may be subject to fines and other penalties amounting to $1.5 million for concealing information about an accident that occurred on Oct. 2 and involved a robotaxi that dragged a pedestrian 20 feet after being hit by another car.

In a related development, GM CEO Mary Barra announced on Dec. 4 that the carmaker’s outside assessment of Cruise’s safety will continue until the first quarter of 2024.

“We will be transparent. I am not going to rush either of them,” Barra stated.

The increasing regulatory pressure could make it more difficult for GM and Cruise to regain the public’s trust and resume operations in California after they were accused of hiding information about the San Francisco tragedy.

Judge Robert Mason instructed the autonomous vehicle company to justify why it “should not be fined, penalized, and receive other regulatory sanctions for failing to provide complete information to the California Public Utilities Commission” in a 13-page opinion.

Moreover, Cruise must respond in writing to the injunction by Dec.18 and appear in court on February 6. If the corporation can’t make a strong enough case, it could face fines of $500 to $100,000 per day, for the 15 days it took for Cruise to provide a full account of the accident. 

During a Dec. 4 appearance at the Detroit Automotive Press Association, Barra refrained from stating the maximum amount of losses she would be willing to take with Cruise. However, reports note that Cruise has lost over $8 billion since 2016 and over $700 million in the third quarter.

“I would call it an investment not a loss,” Barra said. “We have to have the right plan. We have to communicate it … and we will do that at the appropriate time.”

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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