GM reported a loss of $1.9 billion on Cruise expenses between January and September this year.
Kyle Vogt, CEO of Cruise, has resigned amid growing safety concerns over self-driving cars.
The company recalled all 950 Cruise vehicles for software updates following an incident where a Cruise vehicle dragged a pedestrian.
The Cruise board named GM general counsel Craig Glidden as Cruise's chief administrative officer.
Kyle Vogt, co-founder and CEO of Cruise, General Motors' autonomous vehicle unit, has resigned amid growing safety concerns and regulatory scrutiny. His resignation follows a series of incidents involving Cruise's self-driving vehicles, including an accident where a Cruise vehicle dragged a pedestrian. This incident led to the recall of all 950 Cruise vehicles for software updates and the suspension of the company's license by the California Department of Motor Vehicles.
Under Vogt's leadership, Cruise expanded its driverless robotaxi fleet in San Francisco and began operations in various cities across the country. However, the company has faced criticism for the autonomous vehicles making unexpected stops, potentially endangering public safety. In addition to the pedestrian incident, independent investigations revealed that the vehicle's algorithm had trouble identifying children.
Following Vogt's resignation, the Cruise board named GM general counsel Craig Glidden as Cruise's chief administrative officer. The company will also retain a third-party safety expert to assess safety operations and culture. Amid these changes, the company is considering layoffs and is awaiting a report from an outside law firm investigating the crash involving a Cruise car.
The financial impact of these issues on General Motors has been significant. GM reported a loss of $1.9 billion on Cruise expenses between January and September this year, in addition to a $732 million loss in the third quarter.
Vogt was named CEO in February 2022, and under his leadership, Cruise expanded its driverless robotaxi fleet in San Francisco and began operations in various cities across the country.
The board has named GM general counsel Craig Glidden as Cruise's chief administrative officer and will retain a third-party safety expert to assess safety operations and culture.