Cruise, GM’s autonomous car unit, is recalling 950 driverless cars in the United States due to a crash involving one of its robotaxis. The company expects to issue more recalls in the future. The National Highway Traffic Safety Administration (NHTSA) made a public notice stating that the collision detection subsystem of the Cruise Automated Driving Systems (ADS) software may respond improperly after a crash. This recall is another setback for GM’s Cruise unit, which has been facing scrutiny over its technology that is crucial to GM’s growth plans. Despite GM Chief Executive Mary Barra’s forecast that Cruise could generate $50 billion in revenue by 2030, the unit lost over $700 million in the third quarter of this year. As a result, GM shares fell 1.6% to $27.95 on Wednesday.
In a separate incident last month, a pedestrian in San Francisco was struck by a hit-and-run driver and then hit a second time by a Cruise robotaxi that failed to stop in time. The recall addresses a software issue where the Cruise AV may attempt to pull over out of traffic instead of remaining stationary after a collision, which is not the desired response. Cruise has been facing two federal investigations regarding the safety of its cars, including incidents where the robot cars did not yield to pedestrians in crosswalks. The company has stated that as their software improves, they may file additional recalls to enhance safety across their fleet.
Cruise has temporarily halted operations nationwide after California regulators suspended its robotaxi operator’s license, citing concerns about the safety of Cruise’s self-driving vehicles. Additionally, the company has paused production of its fully autonomous Cruise Origin. Cruise is currently in competition with Alphabet’s Waymo unit and other companies to bring robot cars to the market. In response to the safety concerns, Cruise is searching for a chief safety officer and has hired law firm Quinn Emanuel to conduct an external review.
In conclusion, Cruise is recalling 950 driverless cars in the United States following a crash involving one of its robotaxis. The recall is due to a software issue with the collision detection subsystem of the Cruise Automated Driving Systems (ADS) software. This recall is a setback for GM’s Cruise unit, which has been facing questions about its technology. Despite GM’s optimistic revenue forecast, Cruise has experienced significant financial losses. The company is also facing federal investigations and has temporarily halted operations and production. Cruise is committed to enhancing safety and may issue additional recalls as their software improves.
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