- Wednesday, October 16, 2024
In a recent hearing, General Motors' troubled robotaxi service, Cruise, endured harsh criticism from Judge Robert Mason III. The judge drew a withering comparison between the company and the character Eddie Haskell from the TV series "Leave It To Beaver." The hearing, which lasted an hour, aimed to consider a proposed settlement regarding Cruise's attempt to conceal its involvement in a collision that led to the suspension of its California license.
The incident, which occurred in San Francisco in early October, involved a Cruise robotaxi named "Panini" dragging a pedestrian for 20 feet at a speed of approximately 7 mph after a human driver struck them. The California Public Utilities Commission, which had previously granted Cruise a permit to operate a fleet of computer-driven taxis in San Francisco, accused the company of covering up the incident for over two weeks. This violation could result in a potential fine of $1.5 million, depending on how regulations are interpreted.
Following the October incident, General Motors installed a new management team at Cruise. This team admitted that they didn't fully inform regulators about Panini's actions that night, while also arguing that the company had no intention of deliberately deceiving anyone.
During the hearing, Judge Mason became increasingly frustrated with Cruise's mixed messaging. He even made a reference to the TV series "Leave It To Beaver," comparing Cruise to the character Eddie Haskell. Craig Glidden, who currently oversees Cruise as its president and chief administrative officer, was on the receiving end of this comment.
Glidden Assures Mason of Cruise's Acceptance of Responsibility
Glidden, the representative from Cruise, has expressed his assurance to Mason that the company will readily accept responsibility for what he refers to as a regrettable "mistake." Initially, Cruise had proposed a settlement amount of $75,000 in the ongoing case. However, when Mason argued that the company should be obligated to pay at least $112,500, Glidden immediately agreed to the higher figure without hesitation.
Moving forward, Glidden emphasized the company's commitment to progress. He also reminded Mason that Cruise may face additional repercussions beyond California, as both the U.S. Justice Department and U.S. Securities and Exchange Commission are currently investigating the conduct of Cruise's robotaxi service.
Despite the settlement offer, Mason indicated his inclination towards allowing the case to proceed through the entire hearing process, rather than accepting the settlement. The judge did not specify a specific timeline for the resolution of the matter.
This hearing comes within two weeks of Cruise releasing a comprehensive report that examines how the company mishandled the situation following the pedestrian's injury. The report, prepared by the law firm of Quinn Emanuel Urquhart & Sullivan, criticized Cruise's former management for their "poor leadership" and fostering a confrontational relationship with regulators. The report also highlighted internet connection issues as a contributing factor that prevented regulators from fully viewing a video showing Panini dragging the pedestrian due to a misinterpretation by the vehicle.
In addition to parting ways with former CEO and co-founder Kyle Vogt, as well as other top executives, Cruise has also downsized its workforce by approximately one-fourth. This decision was made as part of GM's choice to deviate from its initial objective of generating $1 billion in annual revenue from the robotaxi service by 2025.
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