GM's Cruise robotaxi service targeted in Justice Department inquiry into San Francisco collision
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
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
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