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GM’s Cruise robotaxis face Justice Department inquiry into San Francisco collision
SAN FRANCISCO — General Motors is facing a U.S. Justice Department investigation into a gruesome collision that critically injured a pedestrian and derailed its self-driving car ambitions.
The Justice Department inquiry disclosed in a report Thursday is the latest twist in a debacle that began in October after a robotaxi operated by GM’s Cruise subsidiary dragged a pedestrian about 20 feet (6 meters) after the person was struck in San Francisco by another vehicle driven by a human.
The incident resulted in Cruise’s license to operate its driverless fleet in California being suspended by regulators and triggered a purge of its leadership — in addition to layoffs that jettisoned about a quarter of its workforce — as GM curtailed its once-lofty ambitions in self-driving technology. Cruise’s omission of key details about what happened in the Oct. 2 incident also led to allegations of a coverup that could result in a fine of $1.5 million. Cruise has offered to pay $75,000 instead.
GM didn’t release any details about the nature of the Justice Department’s investigation, or of another one by the U.S. Securities and Exchange Commission. A company spokesman would only say GM is cooperating with authorities.
The revelations about the latest troubles facing Detroit-based GM and San Francisco-based Cruise came in a report reviewing how things were handled after the pedestrian was hurt.
The report prepared by the law firm of Quinn Emanuel Urquhart & Sullivan rebuked Cruise’s management that has since been dumped for “poor leadership, mistakes in judgment, lack of coordination, an ‘us versus them’ mentality with regulators.” But the report also asserted that Cruise initially thought it had shown California regulators a video that included segments showing a robotaxi named “Panini” dragging the pedestrian, only to discover later that scene hadn’t been seen because of internet streaming issues.
The report blamed Cruise for having a “myopic focus” on protecting its reputation instead of setting the record straight after management realized regulators hadn’t seen the video of the incident in its entirety.
“Cruise must take decisive steps to address these issues in order to restore trust and credibility,” according to the report’s summary findings.
GM has already installed a new management team at Cruise and walked back its goals for a driverless division that was supposed to transform the transportation industry by operating robotic ride-hailing services across the U.S. Even as skeptics raised doubts about whether autonomous driving technology had become reliable enough to realize that vision, GM was projecting Cruise would generate $1 billion in revenue by 2025 — 10 times the amount it had been bringing in during a ramp-up phase that resulted in billions of dollars in losses.
Cruise had cleared a significant hurdle last August when California regulators approved its request to begin operating its robotaxi service throughout San Francisco at all hours — over the strenuous objections of city officials — only to have it all unravel in early October.
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3 California beaches closed as collapsed pier debris washes ashore
As detritus from the badly damaged Santa Cruz pier washes ashore, California State Parks officials are keeping three beaches closed. “Because of the amount of debris washing up onto the local beaches from the collapsing Santa Cruz municipal wharf,” Twin Lakes State Beach, Seabright State Beach and San Lorenzo Point will be closed until Dec. 30 at 6 a.m., Santa Cruz State Beaches said.
Seacliff State Beach and Rio Del Mar State Beach both reopened on Christmas morning, though visitors should take care: A high-surf warning is in effect along the coast from Thursday morning until Sunday afternoon. The National Weather Service is advising people to stay off piers and jetties.
About 150 feet of the Santa Cruz pier and an entire building housing a restroom broke off into the ocean on Monday amid battering waves. Three people working on the pier plunged into the water, where two needed rescue and a third was able to rescue themselves. Since then, pieces of the wharf have been washing onto local beaches. There is no estimated reopening for the wharf itself. Waves also pulled support piling from the Cayucos Pier about 160 miles south down the Central Coast. The end of the pier was already closed as it incurred damage during stormy conditions in February.
“Please be cautious when near the ocean, as debris from damage north of Capitola is making its way down the coastline,” the Capitola Police Department said. “Several large pilings from the Santa Cruz wharf have found their way to our shores, creating an extreme hazard. Please use caution if you are in the area.”
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