A California judge ruled that Cruise, a subsidiary of General Motors specializing in autonomous vehicles, must enhance its compensation proposal to the statutory maximum following a collision in which a self-driving Cruise taxi severely injured a pedestrian in San Francisco. The accident, which took place in October, prompted the California DMV to revoke Cruise’s license to operate self-driving cars and accused the company of misleading regulatory bodies over the incident’s details.
Legal Proceedings and Settlement Increment
At a recent hearing, Administrative Law Judge Robert Mason III criticized Cruise’s initial settlement offer of $75,000 as insufficient, suggesting instead the maximum penalty of $112,500. Acknowledging Cruise’s attempt to improve its incident response, Mason nudged the company to reconsider the offer to reflect the seriousness of the situation. Responding to the judge’s directive, Cruise’s President promptly agreed to adjust the offer to the requested amount.
Investigations and Regulatory Responses
An investigation by law firm Quinn Emanuel revealed that technical issues with internet connectivity affected the sharing of accident footage with regulators. The case’s proceedings now wait for Judge Mason’s proposed ruling for the commissioner’s review, expected within 60 days. Cruise has expressed a willingness to settle and focus on advancing the safety and accessibility of driverless technology.
Cruise has outlined commitments as part of the potential settlement, including enhanced data reporting and transparency with regulatory bodies. Additionally, the firm mentioned organizational changes and the introduction of a new Chief Safety Officer in the future.
The tech company also noted that the mishap resulted from the vehicle’s misidentification of the type of collision, which led to an inappropriate safety response. Amidst these developments, GM has announced plans to reduce funding for Cruise while still aiming for a strategic realignment of the autonomous vehicle unit’s operations.
Despite recent leadership and operational changes at Cruise, GM’s commitment to regaining regulatory and public trust remains a top priority, as indicated by CEO Mary Barra’s remarks following the brand’s disclosure of its earnings for 2023.
