GM's Self-Driving Car Dream Hits Roadblock: DOJ Investigates Gruesome Cruise Accident

General Motors (GM), a titan in the automotive industry, is now under the U.S. Justice Department's microscope following a horrifying incident involving its self-driving subsidiary, Cruise. This investigation, revealed in a recent report, adds a new layer of complexity to GM's troubled journey in autonomous vehicle development.

The incident, which occurred in October in San Francisco, involved a Cruise robotaxi dragging a pedestrian for 20 feet after an initial collision with a human-driven vehicle. This event not only led to severe injuries for the pedestrian but also resulted in California regulators suspending Cruise's license to operate its driverless fleet. The fallout from the incident has been significant for Cruise, culminating in leadership changes, layoffs of about a quarter of its workforce, and scaled-back ambitions in the self-driving sector.

Cruise's response to the accident has also come under fire. Allegations of omitting crucial details and a potential coverup have surfaced, possibly leading to a hefty fine of $1.5 million, although Cruise has proposed to pay $75,000.

GM has remained tight-lipped about the specifics of the investigations by the Justice Department and the U.S. Securities and Exchange Commission, stating only its cooperation with the authorities.

A report by Quinn Emanuel Urquhart & Sullivan law firm criticizes Cruise's former management for poor leadership and judgment, particularly in their interactions with regulators. The report also highlights that Cruise believed it had shown regulators a video of the incident, including the pedestrian being dragged, only to realize later that the footage was not fully streamed due to internet issues.

This misstep led to an accusation of Cruise prioritizing its reputation over transparency. The report urges decisive action to regain trust and credibility. In response, GM has reshuffled Cruise's management and recalibrated its goals for the driverless division, once seen as a game-changer in transportation with projections of $1 billion in revenue by 2025.

The accident and subsequent investigations mark a significant setback for GM's ambitious plans in autonomous driving. The incident underscores the challenges and public safety concerns associated with self-driving technology, raising questions about its readiness for widespread adoption. As GM navigates through these challenges, the future of Cruise and the broader autonomous vehicle industry remains under intense scrutiny.