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GM's self-driving Cruise unit to pay $112,500 for delaying crash report
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GM's self-driving Cruise unit to pay $112,500 for delaying crash report
Jun 21, 2024 12:55 PM

June 20 (Reuters) - A California regulator said on

Thursday it is imposing the maximum penalty of $112,500 on

General Motors' ( GM ) self-driving Cruise unit for the

company's failure to promptly provide complete information to

the commission about a serious crash involving one of its

robotaxis last year.

WHY IT'S IMPORTANT

Cruise along with other self-driving vehicle companies like

Alphabet's Waymo and Amazon's ( AMZN ) Zoox have come

under heavy scrutiny from regulators arising out of safety

concerns due to multiple crashes involving their vehicles.

BY THE NUMBERS

Cruise will pay the maximum penalty allowable by the

California Public Utilities Commission, totaling $112,500, which

is $7,500 for each of the 15 days during which Cruise withheld

information about the incident, the regulator said.

Cruise will also provide "collision reports" to the CPUC and

the National Highway Traffic Safety Administration for

collisions occurring in California.

WHAT CRUISE SAYS

"We are gratified to have reached a settlement with the

CPUC. Over the past several months, we have taken important

steps to improve our leadership, processes and culture," Cruise

said.

CONTEXT

The decision by the California commission comes a few months

after Cruise raised its offer to the maximum seeking to resolve

the investigation.

On Oct. 2, a pedestrian hit by another vehicle was thrown

into the path of a self-driving Cruise vehicle and dragged 20

feet. A person familiar with the matter said the woman suffered

serious injuries, but was expected to survive.

Cruise's permit to operate in California was suspended and

the NHTSA issued a recall of its vehicles after the incident.

Cruise had resumed operations in the U.S. with a small fleet

of human-driven vehicles in Phoenix, Arizona in April, but

Cruise's authority to provide passenger service in its

autonomous vehicles in California remains suspended.

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