General Motors must pay a criminal fine for false reports

General Motors must pay a criminal fine for false reports

2024-11-16 12:32:00

General Motors must pay a criminal fine for false reports

General Motors’ self-driving car unit Cruise admitted to filing a false report to influence a federal investigation and will pay a $500,000 criminal fine as part of a deferred prosecution agreement, the Justice Department said.

The department said Cruise failed to disclose key details of an October 2023 crash to the National Highway Traffic Safety Administration (NHTSA) in which one of its robotaxis in San Francisco struck a pedestrian after she was hit. by another vehicle and dragged her 20 feet (6.1 meters).

“Companies with self-driving cars seeking to share our roads and crosswalks must be completely truthful in their reports to their regulators,” said Martha Boersch, who heads the criminal division of the US attorney’s office in San Francisco.

Under the three-year agreement, Cruise must cooperate with government investigations, implement a safety compliance program and provide annual reports to the U.S. attorney’s office, which can proceed with prosecution of the charged crime if Cruise fails to comply during the next three years.

“Cruise will comply with the requirements set forth in the agreement, as we continue to move forward under new leadership and with a strong commitment to transparency with our regulators,” Cruise president Craig Glidden said in a statement.

In response to the accident and subsequent investigations, Cruise’s CEO and co-founder resigned, the company cut a quarter of its workforce and fired nine executives, including its chief operating officer and chief legal and policy officer.

Cruise’s robotaxi stopped after hitting the pedestrian, but then attempted to pull over to the side of the road with the woman underneath, dragging her and seriously injuring her. Cruise’s report to NHTSA omitted the reference to drag. GM later reached a settlement with the woman worth at least $8 million, a person confirmed to Reuters.

In September, Cruise agreed to pay a $1.5 million fine to resolve an NHTSA investigation. Cruise must submit to NHTSA a corrective action plan on how it will improve its compliance with serious incident reporting and will face enhanced reporting requirements for at least two years.

NHTSA’s investigation into whether Cruise takes enough precautions with its autonomous robotaxis to protect pedestrians remains open. In August, Cruise recalled 1,200 robotaxis due to problems with hard braking.

The company also faces an investigation by the Securities and Exchange Commission.

Cruise has relaunched supervised self-driving tests in three US cities, but abandoned its Origin vehicle, which has no human controls. The company said in August that it will offer its autonomous vehicles on the Uber transportation platform starting next year.

1731892174
#General #Motors #pay #criminal #fine #false #reports

How might the incident involving Cruise influence future regulations‌ surrounding autonomous vehicle technology?

**Interview with Martha ‍Boersch, Head of the Criminal Division of the⁤ U.S. Attorney’s Office in San Francisco**

**Editor:** Thank you for​ joining us today, Martha. We understand that Cruise, GM’s self-driving car unit, has admitted to filing a ‍false report regarding a serious incident involving ‌one of their robotaxis.⁢ Can you explain the significance of this admission and what it means for the company moving forward?

**Martha Boersch:** Thank you for having me.‌ The admission ‍of guilt from Cruise is significant because it underscores the importance of transparency and honesty in the burgeoning field of autonomous vehicles. When ‌companies misreport or fail to disclose critical information, it jeopardizes public⁣ safety and undermines trust​ in the entire industry. ‍Our agreement​ with Cruise includes strict requirements for them to‌ cooperate with ongoing investigations and implement rigorous safety compliance measures.

**Editor:** The accident in question was quite severe, involving a pedestrian being struck and subsequently dragged by the vehicle. How does such an event impact regulatory ⁤perspectives toward self-driving technology?

**Martha Boersch:** Such incidents highlight the inherent risks associated with self-driving technology. It emphasizes that manufacturers and developers must prioritize safety above all. Regulators are closely monitoring these companies to ensure that they are operating at the highest standards because any negligence could lead to tragic consequences.

**Editor:** Cruise has stated they will comply with the‍ agreement and are committed to transparency moving forward. What mechanisms will ensure that they adhere to⁤ these requirements?

**Martha Boersch:** As part of⁣ the deferred prosecution⁣ agreement, Cruise is mandated⁤ to provide annual reports, and they must maintain an active role in cooperating with ⁣our investigations. If ⁤they fail to⁤ meet the requirements over the next three years, we will reserve the right to pursue prosecution. This oversight is crucial to ensure accountability.

**Editor:** The leadership changes within Cruise following this incident seem substantial. Do you believe these changes will help in restoring confidence both within the company and among regulators and ‍the⁤ public?

**Martha Boersch:** Leadership changes can certainly be a catalyst⁤ for‍ a cultural shift within an organization. It’s vital for new ‍leadership to embrace a culture⁣ of transparency and accountability, crucial aspects in rebuilding‌ trust with regulators and the community. Their ‌actions in the coming months‍ will be closely observed.

**Editor:** Thank you, Martha, for ‍your insights on this matter. It’s clear that the implications of this incident extend far‍ beyond Cruise, affecting the entire⁢ landscape of autonomous vehicle regulation.

**Martha Boersch:** Thank you for having ⁤me. It’s a critical time for the industry, and ⁢ongoing dialogue ‍is essential for safety and innovation.

Leave a Replay