According to Bloomberg and CNBC, several days after California's license was revoked, General Motors' autonomous taxi subsidiary Cruise voluntarily suspended the entire fleet's autonomous driving business. Given that Cruise has been laying the foundation for expansion into multiple cities in the United States and Japan, this is a major setback for the company.
On October 24th, the California Department of Motor Vehicles suspended Cruise's eligibility to operate autonomous vehicles in California and accused the company of concealing key videos of a pedestrian accident in San Francisco. In addition, the National Highway Traffic Safety Administration (NHTSA) has also launched an investigation into Cruise.
Cruise posted on social media platform X (formerly known as Twitter), stating, "The most important thing for us now is to take measures to rebuild public trust. In this spirit, we have decided to proactively suspend the autonomous driving business of all fleets
However, Cruise will continue to operate autonomous vehicle equipped with safe drivers. In addition, a Cruise spokesperson stated that Cruise is conducting development work in 11 other cities to ultimately provide services and will continue to carry out this work.
Reilly Brennan, general partner of Trucks Venture Capital, which invests in transportation technology, said that how Cruise handles the current crisis will have an impact on all autonomous vehicle operators. So far, California regulatory agencies have focused on Cruise, but more events will bring problems to other companies such as Waymo under Alphabet.
Brennan said: "This is a decisive moment for Cruise and all autonomous vehicle companies. At present, the contradiction in the autonomous driving industry is that all companies' successes are personal, but all failures are collective, right or wrong."
Image source: Cruise
However, General Motors CEO Mary Barra stated during the third quarter earnings conference call that the company believes in autonomous driving technology and plans to collaborate with Honda to deploy autonomous driving technology in Tokyo in 2026. A spokesperson for Honda stated that the suspension of Cruise's autonomous driving business in the United States currently has no impact on Honda's plans.
Cruise has already conducted autonomous driving operations in San Francisco, Austin, Phoenix, Houston, Dallas, and Miami. Cruise has operated 400 autonomous vehicles in San Francisco and 200 vehicles in Austin, Houston, and Phoenix.
General Motors CEO Mary Barra has repeatedly stated that General Motors believes Cruise cars are safer than human drivers.
Barra said during a conference call on General Motors' third quarter financial results, "We believe Cruise has enormous opportunities for development and expansion. Safety will be a key factor for us, and we will continue to collaborate with cities where our business is deployed." She also stated that General Motors plans to support Cruise's expansion
Barra mentioned Cruise as an example of GE's "defining future transportation" history and stated that Cruise "will continue to promote the progress that autonomous driving technology brings to society". She pointed out that safety "has always been the most important, and this is also where they constantly improve".
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