Cruise

Cruise will always be known as the robotaxi company to burn $15B to completely piss off both every resident of San Francisco and all of the government regulators…

Cruise stock chart

How bad of a situation is Cruise in?

It isn’t looking good. It has been 4 months since their epic disaster of seriously injuring a pedestrian, misinforming regulators and the public, and shutting down service. They have pushed out almost all of their executives and a quarter of their staff. And they do not appear to have a recovery plan. Things do not look good. One has to expect Cruise to be sold in a fire sale or simply abandoned by the end of 2024. This post covers a few recent factors that point in this direction.
Read MoreHow bad of a situation is Cruise in?

SF Chronicle – Driverless robotaxis are causing less mayhem on S.F. streets. City officials explain why

Robotaxi disruptions for emergency responders have fallen significantly for the last 6 months. This is due to Cruise suspending operations, and because Waymo is now more careful to avoid geolocated incidences. Also, Waymo now gives emergency responders ability to manually move a vehicle.
Read MoreSF Chronicle – Driverless robotaxis are causing less mayhem on S.F. streets. City officials explain why

Cruise Report by Quinn Emanuel Does not Provide Key Details to Regulators

An analysis by Michael Smith on the Quinn Emanuel Report (QER) on the October 2nd, 2023 crash where a pedestrian was dragged and seriously injured. The report was commissioned by Cruise to determine what went wrong and how to address the problems, both technical and operational. But the QER failed to address the most important issues and is therefore not an indication that Cruise is moving forward with improving safety.
Read MoreCruise Report by Quinn Emanuel Does not Provide Key Details to Regulators
Reuters

Reuters – GM to cut spending by $1 billion on robotaxi unit Cruise in 2024

General Motors is slashing Cruise's 2024 budget by $1 billion despite a commitment to its robotaxi venture. Following an accident resulting in investigations, GM seeks to refocus Cruise, now enduring a $2.7 billion loss and restructuring. CEO Barra emphasizes safety and talent retention, as expansion plans are paused.
Read MoreReuters – GM to cut spending by $1 billion on robotaxi unit Cruise in 2024

NY Times – Cruise Says Hostility Toward Regulators Led to Grounding of Its Autonomous Cars

An investigation by Quinn Emanuel law firm into an October crash involving a Cruise driverless car revealed a lack of clear communication with regulators and prioritization of reputation over safety. Following the incident, the Justice Department and other agencies are investigating, Cruise has halted operations, laid off staff, and replaced its CEO. The self-driving subsidiary of General Motors is now seeking to rebuild trust and resume business..
Read MoreNY Times – Cruise Says Hostility Toward Regulators Led to Grounding of Its Autonomous Cars

Cruise Releases Third-Party Findings Regarding October 2

In a blog post, Cruise published the detailed Quinn Emanuel report on the October 2nd crash where a pedestrian was struck by a Cruise AV after a hit-and-run incident. Despite Cruise's claim of no intentional deceit, the report uncovers procedural and leadership shortcomings, leading to misinformation and incomplete disclosures to regulators and the media. This resulted in the suspension of Cruise's driverless permits. Changes including high-level employee departures and operational overhauls are being implemented.
Read MoreCruise Releases Third-Party Findings Regarding October 2

Washington Post – DOJ and SEC investigate GM-owned self-driving car company Cruise

The DOJ and SEC are investigating Cruise, a GM-owned autonomous car company, following an incident in October where a car hit and dragged a pedestrian. This comes after the California DMV suspended Cruise's permits. The company, which paused its driverless testing, is cooperating with authorities and released a report on the crash.
Read MoreWashington Post – DOJ and SEC investigate GM-owned self-driving car company Cruise

Washington Post – San Francisco sues California over ‘unsafe,’ ‘disruptive’ self-driving cars

San Francisco is suing a state commission for letting autonomous vehicle companies, like Waymo and GM's Cruise, operate without strict regulation, following numerous safety incidents. The city's action reflects growing concerns over self-driving cars, which were initially welcomed. The legal challenge aims to compel more rigorous safety standards and reporting for these vehicles, amidst fears they're compromising public safety and disrupting emergency services. Waymo remains operational, while Cruise lost its permit after a crash.
Read MoreWashington Post – San Francisco sues California over ‘unsafe,’ ‘disruptive’ self-driving cars

Cruise hits, runs over, and drags pedestrian, severely injuring them

Detailed crash analysis (completed 1/23/2024, before Quinn report was made available): On 10/2/23 a pedestrian in San Francisco crossed 5th Street at Market Street in the crosswalk as the light turned red. The pedestrian was first hit by a human-driven vehicle, remained on the hood for a distance, and then fell into the adjacent lane. A Cruise robotaxi in the adjacent lane hit the pedestrian and stopped. The Cruise vehicle then proceeded another 20 feet, dragging the pedestrian underneath the vehicle. The pedestrian was severely injured by the Cruise robotaxi. Regulators shut down Cruise service for providing misinformation.
Read MoreCruise hits, runs over, and drags pedestrian, severely injuring them

Automotive News – Cruise casts shadow on self-driving tech at CES 2024

See full original article by Pete Bigelow at Automotive News. Cruise-related headwinds dampened the autonomous outlook in some quarters, but trucks may keep on rolling. LAS VEGAS — Self-driving vehicles and advances in automated-driving technology have been a CES staple since Audi drove an A7 autonomously from San Francisco to…

Read MoreAutomotive News – Cruise casts shadow on self-driving tech at CES 2024