On Monday, the U.S. National Highway Traffic Safety Administration (NHTSA) imposed a $1.5 million fine on Cruise, the autonomous vehicle division of General Motors. The fine was issued due to the company’s failure to provide crucial details about an incident in October 2023, where one of its self-driving cars hit and dragged a pedestrian in San Francisco.
Cruise initially submitted incomplete reports, omitting essential information requested by NHTSA regarding the accident. While the reports covered pre-crash, crash, and post-crash data, they failed to include a significant fact: the pedestrian was dragged 20 feet by the vehicle at a speed of about 7 mph, resulting in serious injuries. Eventually, Cruise provided a 100-page report from a law firm that outlined the company’s shortcomings during the accident.
According to the report, Cruise executives played footage of the crash during an October 3rd meeting with the San Francisco mayor’s office, NHTSA, the Department of Motor Vehicles (DMV), and other officials. However, the video was disrupted by poor internet connection, which conveniently obscured the part where the car dragged the pedestrian. Although Cruise executives were aware of the full extent of the accident, they chose not to verbally mention this detail during the meeting, hoping the video would “speak for itself.”
NHTSA investigators later discovered the dragging incident after requesting the complete video from Cruise. The agency found that Cruise had also revised four other accident reports involving its autonomous vehicles to include previously omitted details.
As part of the new regulations, Cruise must now submit a corrective action plan to NHTSA. Additionally, the company is required to provide information on the number of vehicles in operation, total miles driven, and whether its cars are operating without human drivers. Cruise must also report any software updates affecting vehicle operations, disclose tickets and traffic violations, and suggest ways to improve safety. The company will meet quarterly with NHTSA to review its reporting and compliance efforts.
This order will be in effect for at least two years, with the possibility of a third-year extension. Despite the fine, NHTSA is continuing to investigate whether Cruise adequately safeguarded pedestrians during its operations. The company is also facing ongoing investigations by the U.S. Department of Justice and the Securities and Exchange Commission.
The incident triggered significant changes within Cruise. After the accident, the company temporarily halted its self-driving operations. In November, Cruise’s CEO resigned, and GM announced plans to cut hundreds of millions of dollars in investments while restructuring leadership. By December, nine additional executives were dismissed.
Despite these setbacks, Cruise is attempting to recover under new management. The company plans to resume operations with driver-assisted vehicles in Arizona and Houston later this year, with GM pledging an additional $850 million investment. Earlier this month, Cruise also resumed operations in California, but with human drivers in control—an undoubtedly safer move.
