Joe Burn

Robotaxi company Cruise has paid out between $8 million and $12 million to a woman who was dragged 20 feet by one of its autonomous vehicles in downtown San Francisco last fall, according to <a href="https://fortune.com/2024/05/14/gm-cruise-settlement-pedestrian-accident-san-francisco/">Fortune</a>.

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Robotaxi company Cruise has paid out between $8 million and $12 million to a woman who was dragged 20 feet by one of its autonomous vehicles in downtown San Francisco last fall, according to <a href="https://fortune.com/2024/05/14/gm-cruise-settlement-pedestrian-accident-san-francisco/">Fortune</a>.

California Department of Motor Vehicles officials say Cruise didn&#8217;t show regulators complete footage of an&nbsp;<a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">Oct. 2 incident in Downtown San Francisco</a>&nbsp;where a robotaxi dragged a woman after she was hit by a human driver.

Woman hit by driver, run over by Cruise robotaxi in downtown San Francisco

California Department of Motor Vehicles officials say Cruise didn't show regulators complete footage of an&nbsp;<a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">Oct. 2 incident in Downtown San Francisco</a>&nbsp;where a robotaxi dragged a woman after she was hit by a human driver.

California Department of Motor Vehicles officials say Cruise didn&#8217;t show regulators complete footage of an&nbsp;<a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">Oct. 2 incident in Downtown San Francisco</a>&nbsp;where a robotaxi dragged a woman after she was hit by a human driver.

The DMV <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-suspended-dmv-san-francisco/">suspended Cruise&#8217;s driverless taxi permits</a>. The company is now taking steps to reinstate its license to drive passengers around autonomously in <a href="https://www.sfexaminer.com/news/transit/cruise-seeking-to-reinstate-suspended-california-permits/article_b5d27284-f78e-11ee-a2bb-4bf74ccfde54.html">San Francisco</a> and is set to <a href="https://www.cnbc.com/2024/04/09/gms-cruise-to-relaunch-vehicles-with-human-drivers-in-phoenix.html">resume operations in Phoenix</a> soon.

DMV stops San Francisco Cruise robotaxis after woman got stuck under driverless car

The DMV <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-suspended-dmv-san-francisco/">suspended Cruise's driverless taxi permits</a>. The company is now taking steps to reinstate its license to drive passengers around autonomously in <a href="https://www.sfexaminer.com/news/transit/cruise-seeking-to-reinstate-suspended-california-permits/article_b5d27284-f78e-11ee-a2bb-4bf74ccfde54.html">San Francisco</a> and is set to <a href="https://www.cnbc.com/2024/04/09/gms-cruise-to-relaunch-vehicles-with-human-drivers-in-phoenix.html">resume operations in Phoenix</a> soon.

The DMV <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-suspended-dmv-san-francisco/">suspended Cruise&#8217;s driverless taxi permits</a>. The company is now taking steps to reinstate its license to drive passengers around autonomously in <a href="https://www.sfexaminer.com/news/transit/cruise-seeking-to-reinstate-suspended-california-permits/article_b5d27284-f78e-11ee-a2bb-4bf74ccfde54.html">San Francisco</a> and is set to <a href="https://www.cnbc.com/2024/04/09/gms-cruise-to-relaunch-vehicles-with-human-drivers-in-phoenix.html">resume operations in Phoenix</a> soon.

Firefighters responded to a report of a woman trapped under a Cruise robotaxi on Oct. 2, 2023.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/10/Screenshot-2023-10-02-at-10.41.14-PM.png?w=998" alt="Firefighters in dark-colored gear with fluorescent stripes stand near a department heavy rescue vehicle." class="wp-image-207496"/><figcaption class="wp-element-caption">Firefighters respond to a report of a woman trapped under a Cruise robotaxi on Oct. 2, 2023.</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/10/Screenshot-2023-10-02-at-10.41.14-PM.png?w=998" alt="Firefighters in dark-colored gear with fluorescent stripes stand near a department heavy rescue vehicle." class="wp-image-207496"/><figcaption class="wp-element-caption">Firefighters respond to a report of a woman trapped under a Cruise robotaxi on Oct. 2, 2023.</figcaption></figure>

Citing an anonymous source whose information was independently verified, Fortune confirmed the settlement but was unable to identify the victim of the October crash, which resulted in life-threatening injuries.

Citing an anonymous source whose information was independently verified, Fortune confirmed the settlement but was unable to identify the victim of the October crash, which resulted in life-threatening injuries.

After the point of impact, the Cruise vehicle came to a stop with the woman trapped underneath. However, the robotaxi then attempted to pull over while the pedestrian was under the vehicle, which dragged her about 20 feet at a speed of 7 mph before coming to a final stop.

After the point of impact, the Cruise vehicle came to a stop with the woman trapped underneath. However, the robotaxi then attempted to pull over while the pedestrian was under the vehicle, which dragged her about 20 feet at a speed of 7 mph before coming to a final stop.

The victim is said to have been discharged from Zuckerberg San Francisco General Hospital after arriving in critical condition, Fortune reports.

The victim is said to have been discharged from Zuckerberg San Francisco General Hospital after arriving in critical condition, Fortune reports.

In the aftermath of the incident, General Motors cut Cruise&#8217;s annual budget by $1 billion and replaced almost all of its management team. Tax filings show that the robotaxi firm has lost over $9 billion since GM took over in 2016.

In the aftermath of the incident, General Motors cut Cruise's annual budget by $1 billion and replaced almost all of its management team. Tax filings show that the robotaxi firm has lost over $9 billion since GM took over in 2016.

In the aftermath of the incident, General Motors cut Cruise&#8217;s annual budget by $1 billion and replaced almost all of its management team. Tax filings show that the robotaxi firm has lost over $9 billion since GM took over in 2016.

“The hearts of all Cruise employees continue to be with the pedestrian, and we hope for her continued recovery,” a Cruise spokesperson said in a statement.

“The hearts of all Cruise employees continue to be with the pedestrian, and we hope for her continued recovery,” a Cruise spokesperson said in a statement.

Woman dragged by Cruise robotaxi gets over $8M settlement: Report

Kevin Truong

Cruise has been pulling back from San Francisco since losing its permit to operate autonomous vehicles here. Now, the robotaxi company is putting the second of two major SoMa office buildings it occupies on the market.&nbsp;

Cruise has been pulling back from San Francisco since losing its permit to operate autonomous vehicles here. Now, the robotaxi company is putting the second of two major SoMa office buildings it occupies on the market.&nbsp;

A 110,000-square-foot building at 345 Brannan St. is being offered fully furnished via a sublease that runs through November 2031, according to a marketing brochure from real estate brokerage CBRE.

A 110,000-square-foot building at 345 Brannan St. is being offered fully furnished via a sublease that runs through November 2031, according to a marketing brochure from real estate brokerage CBRE.

The five-story property offers tech office amenities including an outdoor terrace, a game room, a library, a recording studio and a roof deck. The space is currently set up with 691 workstations and the listing touts the ability to add around 100 more.&nbsp;

The five-story property offers tech office amenities including an outdoor terrace, a game room, a library, a recording studio and a roof deck. The space is currently set up with 691 workstations and the listing touts the ability to add around 100 more.&nbsp;

Real estate firm Kilroy Realty Corp. paid a record price per square foot for a large San Francisco office building when it purchased 345 Brannan for $146 million in 2019.&nbsp;

Real estate firm Kilroy Realty Corp. paid a record price per square foot for a large San Francisco office building when it purchased 345 Brannan for $146 million in 2019.&nbsp;

Signage indicating retail space is available for lease at 345 Brannan St. in San Francisco on Monday, April 22, 2024. In 2019, the self-driving, autonomous vehicle company Cruise signed leases at 301, 333 and 345 Brannan Street.

<div class="wp-block-image">
<figure class="alignright size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/04/345-brannan-street-05.jpeg?w=1667" alt="An urban building entrance with a large &quot;345&quot; sign, a banner, a no parking sign, and a bike rack." class="wp-image-269427"/><figcaption class="wp-element-caption">In 2019, Cruise signed leases at 301, 333 and 345 Brannan St. It is now offering two of those buildings on the sublease market.</figcaption></figure></div>

<figure class="wp-block-image alignright size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2024/04/345-brannan-street-05.jpeg?w=1667" alt="An urban building entrance with a large &quot;345&quot; sign, a banner, a no parking sign, and a bike rack." class="wp-image-269427"/><figcaption class="wp-element-caption">In 2019, Cruise signed leases at 301, 333 and 345 Brannan St. It is now offering two of those buildings on the sublease market.</figcaption></figure>

That acquisition was paired with an announcement that Cruise would be leasing 375,000 square feet across 345 Brannan and two adjacent buildings. But the company’s stumbles, paired with the post-pandemic office pullback, have changed the calculus. Cruise previously put an 83,000-square-foot building at 301 Brannan St. on the sublease market.

That acquisition was paired with an announcement that Cruise would be leasing 375,000 square feet across 345 Brannan and two adjacent buildings. But the company’s stumbles, paired with the post-pandemic office pullback, have changed the calculus. Cruise previously put an 83,000-square-foot building at 301 Brannan St. on the sublease market.

“As we’ve previously shared, Cruise is realigning resources, including real estate, to support our updated operations plan and more deliberate path back to our driverless mission,” a Cruise spokesperson said in a statement.&nbsp;

“As we’ve previously shared, Cruise is realigning resources, including real estate, to support our updated operations plan and more deliberate path back to our driverless mission,” a Cruise spokesperson said in a statement.&nbsp;

San Francisco has been Cruise’s headquarters since it was founded here in 2013. More recently, however, the city has been the site of some of the General Motors-owned company’s biggest setbacks.&nbsp;

San Francisco has been Cruise’s headquarters since it was founded here in 2013. More recently, however, the city has been the site of some of the General Motors-owned company’s biggest setbacks.&nbsp;

In October, a Cruise robotaxi <a href="https://sfstandard.com/2024/02/06/judge-questions-cruise-execs-about-san-francisco-pedestrian-dragging-incident/">struck and dragged a woman</a> underneath its wheels in San Francisco after the pedestrian was first hit by a human-driven vehicle. That gruesome incident followed an intensive back and forth between the company and local officials over how the autonomous vehicle company should be regulated.&nbsp;

Judge grills Cruise about dragging woman along San Francisco street

In October, a Cruise robotaxi <a href="https://sfstandard.com/2024/02/06/judge-questions-cruise-execs-about-san-francisco-pedestrian-dragging-incident/">struck and dragged a woman</a> underneath its wheels in San Francisco after the pedestrian was first hit by a human-driven vehicle. That gruesome incident followed an intensive back and forth between the company and local officials over how the autonomous vehicle company should be regulated.&nbsp;

The crash led to a six-month-long pause on Cruise’s operations nationwide, the <a href="https://sfstandard.com/2023/12/13/crusie-executives-fired-investigation-san-francisco-robotaxis/">departure of several top executives</a>, including founder and CEO Kyle Vogt, and layoffs impacting a quarter of the company’s workforce, including <a href="https://sfstandard.com/2023/12/15/cruise-mass-layoffs-ex-employee-san-francisco/">nearly 400 employees</a> in San Francisco.

Cruise executives fired as company accused of hiding video of San Francisco crash

Laid-off Cruise worker dishes on lingering impact of San Francisco crash on robotaxi company

The crash led to a six-month-long pause on Cruise’s operations nationwide, the <a href="https://sfstandard.com/2023/12/13/crusie-executives-fired-investigation-san-francisco-robotaxis/">departure of several top executives</a>, including founder and CEO Kyle Vogt, and layoffs impacting a quarter of the company’s workforce, including <a href="https://sfstandard.com/2023/12/15/cruise-mass-layoffs-ex-employee-san-francisco/">nearly 400 employees</a> in San Francisco.

Cruise is also under investigation from a number of regulatory bodies including the U.S. Department of Justice, the National Highway Traffic Safety Administration and the California Department of Motor Vehicles.

Cruise is also under investigation from a number of regulatory bodies including the U.S. Department of Justice, the National Highway Traffic Safety Administration and the California Department of Motor Vehicles.

Earlier this month, Cruise restarted its manually driven vehicle program in Phoenix as part of a data collection effort. The company’s self-driving robotaxis are still grounded for the time being, with no timeline for the return of operations to San Francisco.&nbsp;

Earlier this month, Cruise restarted its manually driven vehicle program in Phoenix as part of a data collection effort. The company’s self-driving robotaxis are still grounded for the time being, with no timeline for the return of operations to San Francisco.&nbsp;

Last December, <a href="https://sfstandard.com/2023/12/27/gm-cruise-sues-san-francisco/">General Motors sued San Francisco</a>, aiming to claw back a portion of the $121 million in taxes and fees it alleged the city overcharged it.&nbsp;&nbsp;

GM, parent company of Cruise, sues San Francisco for $121M, saying it was wrongly taxed

Last December, <a href="https://sfstandard.com/2023/12/27/gm-cruise-sues-san-francisco/">General Motors sued San Francisco</a>, aiming to claw back a portion of the $121 million in taxes and fees it alleged the city overcharged it.&nbsp;&nbsp;

A Cruise car idling in the middle of the street on Balboa St. after Day 1 of Outside Lands 2023 in San Francisco on Friday, August 11, 2023. Long waits for buses and expensive rideshares plagued the festival yet again, and driverless Cruise cars stalled in the road and added to the traffic.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/12/nightlife_outsidelandsday1_08102023_17.jpg?w=1804" alt="A Cruise vehicle, which is a driverless, autonomous robotaxi, drives at night in San Francisco." class="wp-image-231299"/><figcaption class="wp-element-caption">Cruise vehicles have been off the road in San Francisco since an October incident where a robotaxi hit and dragged a woman in the city. </figcaption></figure>

In January, San Francisco’s city attorney <a href="https://www.washingtonpost.com/technology/2024/01/23/san-francisco-lawsuit-robotaxi-waymo-cruise/">sued the California Public Utilities Commission</a> over its decision to allow Cruise and Google-owned Waymo to operate 24/7 paid taxi service around the city.&nbsp;

In January, San Francisco’s city attorney <a href="https://www.washingtonpost.com/technology/2024/01/23/san-francisco-lawsuit-robotaxi-waymo-cruise/">sued the California Public Utilities Commission</a> over its decision to allow Cruise and Google-owned Waymo to operate 24/7 paid taxi service around the city.&nbsp;

State lawmakers have also proposed legislation that would <a href="https://sfstandard.com/2024/03/11/prodded-by-labor-california-lawmakers-bring-hammer-down-on-self-driving-car-companies/">give local municipalities</a> in California more control over robotaxi fleets, citing San Francisco’s experience as a cautionary tale.&nbsp;&nbsp;

California lawmakers bring hammer down on self-driving car companies

State lawmakers have also proposed legislation that would <a href="https://sfstandard.com/2024/03/11/prodded-by-labor-california-lawmakers-bring-hammer-down-on-self-driving-car-companies/">give local municipalities</a> in California more control over robotaxi fleets, citing San Francisco’s experience as a cautionary tale.&nbsp;&nbsp;

Cruise continues to occupy 185,000 square feet at 333 Brannan St. and 140,000 square feet at 1201 Bryant St.

Cruise continues to occupy 185,000 square feet at 333 Brannan St. and 140,000 square feet at 1201 Bryant St.

Cruise’s listings add to the city’s already record-high availability rate for office space. Research from CBRE found that the availability rate in SoMa was 42.5% in the first quarter, outstripping the citywide figure of 39.1%

Cruise’s listings add to the city’s already record-high availability rate for office space. Research from CBRE found that the availability rate in SoMa was 42.5% in the first quarter, outstripping the citywide figure of 39.1%

Cruise looks to shed two SoMa office buildings as it pulls back from San Francisco

Rachel Scheier

General Motors, the parent company of troubled self-driving car firm Cruise, is suing San Francisco, saying the city improperly overcharged the company more than $100 million over seven years by miscalculating its tax bill.

General Motors, the parent company of troubled self-driving car firm Cruise, is suing San Francisco, saying the city improperly overcharged the company more than $100 million over seven years by miscalculating its tax bill.

In the complaint filed Friday in California Superior Court—which is an amendment to a lawsuit filed against the city in 2021—GM said it was seeking a refund of nearly $108 million in taxes plus some $13 million in interest and penalties between 2016 and 2022. 

In the complaint filed Friday in California Superior Court—which is an amendment to a lawsuit filed against the city in 2021—GM said it was seeking a refund of nearly $108 million in taxes plus some $13 million in interest and penalties between 2016 and 2022.

The Detroit automaker contended that San Francisco-based Cruise is run separately from GM. The automaker had average annual gross receipts of approximately $148 billion over the seven-year period at issue, said the company in the lawsuit. But its core automotive business does not employ anyone in San Francisco, has no manufacturing plants there and only sold $677,000 worth of goods in the city in 2022.&nbsp;

The Detroit automaker contended that San Francisco-based Cruise is run separately from GM. The automaker had average annual gross receipts of approximately $148 billion over the seven-year period at issue, said the company in the lawsuit. But its core automotive business does not employ anyone in San Francisco, has no manufacturing plants there and only sold $677,000 worth of goods in the city in 2022.&nbsp;

READ MORE: <a href="https://sfstandard.com/2023/12/29/cruise-waymo-robotaxis-2024-predictions/">Cruise Imploded in 2023. Can the Robotaxi Industry Recover in the New Year?</a>

Cruise imploded in 2023. Can the robotaxi industry recover in the new year?

READ MORE: <a href="https://sfstandard.com/2023/12/29/cruise-waymo-robotaxis-2024-predictions/">Cruise Imploded in 2023. Can the Robotaxi Industry Recover in the New Year?</a>

&#8220;Cruise&#8217;s technology and autonomous vehicle rideshare with goods delivery business is fundamentally different from GM&#8217;s business,&#8221; which is making and selling cars, said the company in the complaint.

"Cruise's technology and autonomous vehicle rideshare with goods delivery business is fundamentally different from GM's business," which is making and selling cars, said the company in the complaint.

&#8220;Cruise&#8217;s technology and autonomous vehicle rideshare with goods delivery business is fundamentally different from GM&#8217;s business,&#8221; which is making and selling cars, said the company in the complaint.

GM added to its demands from the original 2021 suit, in which company sought a refund of back taxes plus penalties and interest going back to 2016.

GM added to its demands from the original 2021 suit, in which company sought a refund of back taxes plus penalties and interest going back to 2016.

The funds would amount to only a small portion of GM’s reported $156.7 billion in sales in 2022.&nbsp;

The funds would amount to only a small portion of GM’s reported $156.7 billion in sales in 2022.&nbsp;

Cruise CEO Kyle Vogt speaks onstage during TechCrunch Disrupt 2023 at Moscone Center on September 20, 2023 in San Francisco, California.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/The-Robotaxi-Revolution-Photo-1.jpg?w=2500" alt="A man in a blue jacket speaks onstage at a conference." class="wp-image-202923"/><figcaption class="wp-element-caption">Then-Cruise CEO Kyle Vogt speaks onstage during September&#8217;s TechCrunch Disrupt conference at Moscone Center in San Francisco. He stepped down in November. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/The-Robotaxi-Revolution-Photo-1.jpg?w=2500" alt="A man in a blue jacket speaks onstage at a conference." class="wp-image-202923"/><figcaption class="wp-element-caption">Then-Cruise CEO Kyle Vogt speaks onstage during September's TechCrunch Disrupt conference at Moscone Center in San Francisco. He stepped down in November. </figcaption></figure>

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/The-Robotaxi-Revolution-Photo-1.jpg?w=2500" alt="A man in a blue jacket speaks onstage at a conference." class="wp-image-202923"/><figcaption class="wp-element-caption">Then-Cruise CEO Kyle Vogt speaks onstage during September&#8217;s TechCrunch Disrupt conference at Moscone Center in San Francisco. He stepped down in November. </figcaption></figure>

Using Cruise’s payroll to calculate GM’s liabilities resulted in a tax bill based on gross receipts that were “tens of thousands of times greater than if Cruise’s payroll were not included in GM’s payroll factor,” argued the complaint, which was first reported by Bloomberg.

Using Cruise’s payroll to calculate GM’s liabilities resulted in a tax bill based on gross receipts that were “tens of thousands of times greater than if Cruise’s payroll were not included in GM’s payroll factor,” argued the complaint, which was first reported by Bloomberg.

Just months ago, Cruise was riding high after California regulators gave it the go-ahead to offer driverless robotaxi rides throughout San Francisco 24 hours a day, seven days a week. And the company was looking to expand to other cities.

Just months ago, Cruise was riding high after California regulators gave it the go-ahead to offer driverless robotaxi rides throughout San Francisco 24 hours a day, seven days a week. And the company was looking to expand to other cities.

However, GM has since slowed the expansion of its self-driving cars unit and slashed spending after safety concerns forced it to sharply curtail operations.&nbsp;

However, GM has since slowed the expansion of its self-driving cars unit and slashed spending after safety concerns forced it to sharply curtail operations.&nbsp;

Read More: <a href="https://sfstandard.com/2023/12/13/crusie-executives-fired-investigation-san-francisco-robotaxis/">Cruise Executives Fired As Company Accused of Hiding Video of San Francisco Crash</a>

Read More: <a href="https://sfstandard.com/2023/12/13/crusie-executives-fired-investigation-san-francisco-robotaxis/">Cruise Executives Fired As Company Accused of Hiding Video of San Francisco Crash</a>

In November, General Motors CEO Mary Barra wrote in a letter to shareholders that the company was &#8220;addressing challenges&#8221; at Cruise, in part by &#8220;substantially lower spending&#8221; in 2024.

In November, General Motors CEO Mary Barra wrote in a letter to shareholders that the company was "addressing challenges" at Cruise, in part by "substantially lower spending" in 2024.

In November, General Motors CEO Mary Barra wrote in a letter to shareholders that the company was &#8220;addressing challenges&#8221; at Cruise, in part by &#8220;substantially lower spending&#8221; in 2024.

Barra emphasized the importance of revitalizing connections with regulators and first responders while highlighting the company&#8217;s continuous commitment to safety through ongoing safety and incident reviews.

Barra emphasized the importance of revitalizing connections with regulators and first responders while highlighting the company's continuous commitment to safety through ongoing safety and incident reviews.

Barra emphasized the importance of revitalizing connections with regulators and first responders while highlighting the company&#8217;s continuous commitment to safety through ongoing safety and incident reviews.

Earlier this month, nine executives at Cruise left the company amid an ongoing investigation into the company&#8217;s handling of a San Francisco incident in October where a woman was hit by a human driver and thrown into the path of a Cruise robotaxi, which dragged her under the car.

Earlier this month, nine executives at Cruise left the company amid an ongoing investigation into the company's handling of a San Francisco incident in October where a woman was hit by a human driver and thrown into the path of a Cruise robotaxi, which dragged her under the car.

Earlier this month, nine executives at Cruise left the company amid an ongoing investigation into the company&#8217;s handling of a San Francisco incident in October where a woman was hit by a human driver and thrown into the path of a Cruise robotaxi, which dragged her under the car.

Cruise was planning to roll out in three other cities but has now narrowed its focus&nbsp; as it works to improve the driverless fleet it had been testing in San Francisco.

Cruise was planning to roll out in three other cities but has now narrowed its focus&nbsp; as it works to improve the driverless fleet it had been testing in San Francisco.

Read More: <a href="https://sfstandard.com/2023/11/29/cruise-to-substantially-lower-spending-following-san-francisco-crash-gm-tells-shareholders/">Cruise To ‘Substantially Lower Spending’ Following San Francisco Crash, GM Tells Shareholders</a>

Cruise to &#8216;substantially lower spending&#8217; following San Francisco crash, GM tells shareholders

Read More: <a href="https://sfstandard.com/2023/11/29/cruise-to-substantially-lower-spending-following-san-francisco-crash-gm-tells-shareholders/">Cruise To ‘Substantially Lower Spending’ Following San Francisco Crash, GM Tells Shareholders</a>

Additionally, General Motors implemented a restructuring plan, resulting in a 24% reduction in Cruise&#8217;s workforce, with around 900 employees being laid off.

Additionally, General Motors implemented a restructuring plan, resulting in a 24% reduction in Cruise's workforce, with around 900 employees being laid off.

Additionally, General Motors implemented a restructuring plan, resulting in a 24% reduction in Cruise&#8217;s workforce, with around 900 employees being laid off.

The incident prompted California’s Department of Motor Vehicles to suspend Cruise’s driverless permits.

The incident prompted California’s Department of Motor Vehicles to suspend Cruise’s driverless permits.

News of the legal filing comes on the heels of Mayor London Breed asking for city departments to plan for budget cuts of 10% in the upcoming fiscal year to help close a colossal $800 million deficit. The city is expecting a shortfall of $245 million in the upcoming fiscal year, which ends in 2025, followed by $554 million the following year.

News of the legal filing comes on the heels of Mayor London Breed asking for city departments to plan for budget cuts of 10% in the upcoming fiscal year to help close a colossal $800 million deficit. The city is expecting a shortfall of $245 million in the upcoming fiscal year, which ends in 2025, followed by $554 million the following year.

GM said in the suit that under California law, taxes must &#8220;fairly reflect&#8221; the proportion of business operations that go on in a city, and that it was &#8220;inherently distortive&#8221; to charge the company steep tax based on Cruise&#8217;s payroll when many of its employees worked remotely.

GM said in the suit that under California law, taxes must "fairly reflect" the proportion of business operations that go on in a city, and that it was "inherently distortive" to charge the company steep tax based on Cruise's payroll when many of its employees worked remotely.

GM said in the suit that under California law, taxes must &#8220;fairly reflect&#8221; the proportion of business operations that go on in a city, and that it was &#8220;inherently distortive&#8221; to charge the company steep tax based on Cruise&#8217;s payroll when many of its employees worked remotely.

When GM first invested in Cruise in 2016, the startup had approximately 40 employees. By the end of 2022, Cruise employed more than 3,000 people in the city, about 65% of whom were engineers.

When GM first invested in Cruise in 2016, the startup had approximately 40 employees. By the end of 2022, Cruise employed more than 3,000 people in the city, about 65% of whom were engineers.

Joshua Bote

When Cruise <a href="https://sfstandard.com/2023/08/10/future-of-self-driving-cars-in-san-francisco-could-be-decided-today/">appeared in front of the California Public Utilities Commission</a> in August seeking approval for an unlimited expansion of its robotaxi service in San Francisco, the scene was thick with yellow-shirted supporters of the nascent autonomous vehicle industry.&nbsp;

Robotaxis: California regulators OK 24/7 self-driving car expansion in San Francisco

When Cruise <a href="https://sfstandard.com/2023/08/10/future-of-self-driving-cars-in-san-francisco-could-be-decided-today/">appeared in front of the California Public Utilities Commission</a> in August seeking approval for an unlimited expansion of its robotaxi service in San Francisco, the scene was thick with yellow-shirted supporters of the nascent autonomous vehicle industry.&nbsp;

The General Motors-owned company had been preparing for the moment for months. It secured <a href="https://content.sfstandard.com/wp-content/uploads/2023/01/FINAL-Submitted-Letters-1.25-5pm-Merged-Letters-35.pdf">nearly 40 letters of support</a> from a broad coalition of disability groups, local business associations, elected officials and private citizens.

The General Motors-owned company had been preparing for the moment for months. It secured <a href="https://content.sfstandard.com/wp-content/uploads/2023/01/FINAL-Submitted-Letters-1.25-5pm-Merged-Letters-35.pdf">nearly 40 letters of support</a> from a broad coalition of disability groups, local business associations, elected officials and private citizens.

They all followed a similar pattern, emphasizing Cruise’s arguments for expansion: More traffic to San Francisco businesses, safer roads and more autonomy for people who don’t drive, like people with disabilities and senior citizens.

They all followed a similar pattern, emphasizing Cruise’s arguments for expansion: More traffic to San Francisco businesses, safer roads and more autonomy for people who don’t drive, like people with disabilities and senior citizens.

“Through engagement with our organization and other diverse communities, Cruise has clearly demonstrated how their service benefits our businesses’ customers and employees,” one letter from the Fillmore Merchants Association read. “Expanding Cruise’s service will also expand access to our neighborhood and our small businesses.”

“Through engagement with our organization and other diverse communities, Cruise has clearly demonstrated how their service benefits our businesses’ customers and employees,” one letter from the Fillmore Merchants Association read. “Expanding Cruise’s service will also expand access to our neighborhood and our small businesses.”

But these shows of support were not wholly organic. In many cases, Cruise had courted these groups, holding promotional events and providing financial contributions.&nbsp;

But these shows of support were not wholly organic. In many cases, Cruise had courted these groups, holding promotional events and providing financial contributions.&nbsp;

A Cruise driverless robot taxi passes through an intersection in San Francisco on July 24, 2023. The autonomous vehicle company owned by General Motors, is thought to be a step towards wider commercial deployment of a long-promised autonomous alternative to ride-hailing services such as Uber or Lyft in the US. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/12/gettyimages-1556779326.jpg?w=2500" alt="The exterior driver's side of a Cruise driverless vehicle." class="wp-image-228899"/><figcaption class="wp-element-caption">A Cruise driverless robot taxi rolls through an intersection in San Francisco.</figcaption></figure>

Exactly how much Cruise spent on cultivating such relationships is unclear, but it was a key part of its strategy in gaining community support.

Exactly how much Cruise spent on cultivating such relationships is unclear, but it was a key part of its strategy in gaining community support.

The local organizations mobilized to back Cruise, even though a number of key San Francisco agencies—<a href="https://sfstandard.com/2023/01/27/sf-officials-describe-chaos-from-cruise-waymo-cars-as-they-try-to-slow-their-rollout/">including the fire department and the transportation agency</a>—vehemently opposed giving Cruise the go-ahead to operate driverless taxis across the city 24/7, saying the technology was “not ready for prime time.”&nbsp;&nbsp;

SF officials describe chaos from Cruise, Waymo cars as they try to slow their rollout

The local organizations mobilized to back Cruise, even though a number of key San Francisco agencies—<a href="https://sfstandard.com/2023/01/27/sf-officials-describe-chaos-from-cruise-waymo-cars-as-they-try-to-slow-their-rollout/">including the fire department and the transportation agency</a>—vehemently opposed giving Cruise the go-ahead to operate driverless taxis across the city 24/7, saying the technology was “not ready for prime time.”&nbsp;&nbsp;

Seemingly swayed by the arguments of Cruise, its competitor Waymo and their supporters, the state utilities commission gave a green light.&nbsp;

Seemingly swayed by the arguments of Cruise, its competitor Waymo and their supporters, the state utilities commission gave a green light.&nbsp;

But in the following months, significant safety incidents would emerge.

But in the following months, significant safety incidents would emerge.

Less than three months later, the <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-suspended-dmv-san-francisco/">California Department of Motor Vehicles</a> would suspend Cruise’s permit to operate in San Francisco after a pedestrian was dragged nearly 20 feet by a Cruise car after being struck by a driver-operated vehicle in October—the most harrowing incident in a long string of woes for the driverless car company this year.

Less than three months later, the <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-suspended-dmv-san-francisco/">California Department of Motor Vehicles</a> would suspend Cruise’s permit to operate in San Francisco after a pedestrian was dragged nearly 20 feet by a Cruise car after being struck by a driver-operated vehicle in October—the most harrowing incident in a long string of woes for the driverless car company this year.

Cruise would go on to <a href="https://sfstandard.com/2023/10/26/cruise-takes-driverless-cars-off-roads-nationwide/">pull its fleet nationwide</a> days later.

Cruise takes all robotaxis off the roads nationwide after California suspension

Cruise would go on to <a href="https://sfstandard.com/2023/10/26/cruise-takes-driverless-cars-off-roads-nationwide/">pull its fleet nationwide</a> days later.

The October incident was followed by a rash of reports about how the <a href="https://www.bloomberg.com/news/articles/2023-11-22/cruise-collapse-shows-gm-mary-barra-aren-t-ready-to-compete-with-big-tech">company jeopardized safety at the expense of faster growth</a>, the <a href="https://sfstandard.com/2023/11/20/cruise-gm-cofounder-dan-kan-quits-kyle-vogt/">resignation of co-founders Kyle Vogt and Dan Kan</a> and, more recently, a judge <a href="https://sfstandard.com/2023/12/04/cruise-robotaxi-san-francisco-collision-fine/">levying up to a $1.5 million fine</a> on Cruise for <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-dmv-suspension-video/">hiding footage of the accident</a> from state authorities. (A hearing in February will determine if Cruise misled regulators.)

Dan Kan, Cruise&#8217;s co-founder, quits one day after CEO&#8217;s exit

Cruise faces $1.5M fine in alleged cover-up of San Francisco robotaxi collision

Cruise hid video of woman being dragged along San Francisco street, DMV says

The October incident was followed by a rash of reports about how the <a href="https://www.bloomberg.com/news/articles/2023-11-22/cruise-collapse-shows-gm-mary-barra-aren-t-ready-to-compete-with-big-tech">company jeopardized safety at the expense of faster growth</a>, the <a href="https://sfstandard.com/2023/11/20/cruise-gm-cofounder-dan-kan-quits-kyle-vogt/">resignation of co-founders Kyle Vogt and Dan Kan</a> and, more recently, a judge <a href="https://sfstandard.com/2023/12/04/cruise-robotaxi-san-francisco-collision-fine/">levying up to a $1.5 million fine</a> on Cruise for <a href="https://sfstandard.com/2023/10/24/cruise-robotaxi-dmv-suspension-video/">hiding footage of the accident</a> from state authorities. (A hearing in February will determine if Cruise misled regulators.)

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/09/The-Robotaxi-Revolution-Photo-1.jpg?w=2500" alt="A man in a blue jacket speaks onstage at a conference." class="wp-image-202923"/><figcaption class="wp-element-caption">Former Cruise CEO Kyle Vogt speaks onstage during TechCrunch Disrupt 2023 at Moscone Center.</figcaption></figure>

Now, the company’s future remains uncertain.

Now, the company’s future remains uncertain.

If it is to return to San Francisco, it will need allies wherever it can find them. Many of the organizations that lent support to Cruise earlier this year still say they want Cruise to return or would encourage a bid to return to the city.

If it is to return to San Francisco, it will need allies wherever it can find them. Many of the organizations that lent support to Cruise earlier this year still say they want Cruise to return or would encourage a bid to return to the city.

&#8220;Cruise has engaged many local organizations in our goal of building a safer, more accessible transportation future,&#8221; a Cruise spokesperson told The Standard. &#8220;We appreciate the support we have received, and also understand we need to rebuild trust with some partners as we work towards a better Cruise.&#8221;

"Cruise has engaged many local organizations in our goal of building a safer, more accessible transportation future," a Cruise spokesperson told The Standard. "We appreciate the support we have received, and also understand we need to rebuild trust with some partners as we work towards a better Cruise."

&#8220;Cruise has engaged many local organizations in our goal of building a safer, more accessible transportation future,&#8221; a Cruise spokesperson told The Standard. &#8220;We appreciate the support we have received, and also understand we need to rebuild trust with some partners as we work towards a better Cruise.&#8221;

In light of the more recent information, The Standard reached out to the authors of those letters of support to see whether their public statements underscoring Cruise’s benefits still held true.&nbsp;

In light of the more recent information, The Standard reached out to the authors of those letters of support to see whether their public statements underscoring Cruise’s benefits still held true.&nbsp;

Only three decided to reverse their initial positions. The vast majority of signatories that responded held steadfast, and their responses illuminated the process of how Cruise sought these advocacy groups out in the first place.

Only three decided to reverse their initial positions. The vast majority of signatories that responded held steadfast, and their responses illuminated the process of how Cruise sought these advocacy groups out in the first place.

<h2 class="wp-block-heading" id="h-a-bit-slanted">‘A Bit Slanted’</h2>

core/heading

<h2 class="wp-block-heading" id="h-a-bit-slanted">‘A Bit Slanted’</h2>

Thirty-two letters were filed by pro-business groups, lawmakers and nonprofit organizations not explicitly linked to Cruise—effectively throwing the weight of their reputations in support of the company.&nbsp;

Thirty-two letters were filed by pro-business groups, lawmakers and nonprofit organizations not explicitly linked to Cruise—effectively throwing the weight of their reputations in support of the company.&nbsp;

University of California Berkeley Law Professor Colleen Chien said in lobbying a regulator like the state utilities commission, “it’s a well-known practice in regulatory settings” for well-oiled corporations like Cruise “to try to organize the community&#8217;s response and to provide a lot of support including template letters to encourage them to engage in the process.”&nbsp;

University of California Berkeley Law Professor Colleen Chien said in lobbying a regulator like the state utilities commission, “it’s a well-known practice in regulatory settings” for well-oiled corporations like Cruise “to try to organize the community's response and to provide a lot of support including template letters to encourage them to engage in the process.”&nbsp;

University of California Berkeley Law Professor Colleen Chien said in lobbying a regulator like the state utilities commission, “it’s a well-known practice in regulatory settings” for well-oiled corporations like Cruise “to try to organize the community&#8217;s response and to provide a lot of support including template letters to encourage them to engage in the process.”&nbsp;

Chien said that regulators look carefully at community letters to evaluate their content—letters that read too similarly or are written verbatim from a template, for example, may carry less weight than an original, research-laden letter.

Chien said that regulators look carefully at community letters to evaluate their content—letters that read too similarly or are written verbatim from a template, for example, may carry less weight than an original, research-laden letter.

“The letters can be quite influential, but it really will depend on the overall context,” Chien said.

“The letters can be quite influential, but it really will depend on the overall context,” Chien said.

Of the 32 entities that supported Cruise with letters, 13 responded to The Standard’s request for comment.

Of the 32 entities that supported Cruise with letters, 13 responded to The Standard’s request for comment.

Eight of them expressed renewed support of Cruise’s services returning to San Francisco, and some even took aim at the media coverage surrounding the event and Cruise’s recent foibles. Two declined to comment, and another did not have a comment on behalf of their organization—which is still awaiting discussion of its support for Cruise.

Eight of them expressed renewed support of Cruise’s services returning to San Francisco, and some even took aim at the media coverage surrounding the event and Cruise’s recent foibles. Two declined to comment, and another did not have a comment on behalf of their organization—which is still awaiting discussion of its support for Cruise.

Local labor organizers from Service Employees International Union (SEIU) and accessibility leaders hold a press conference in support of autonomous vehicles and robotaxis outside the California Public Utilities Commission (CPUC) building in San Francisco on Thursday, August 10, 2023. The press conference was held shortly before the Commission will hear public comment and vote on two resolutions that would allow autonomous vehicle companies Cruise and Waymo to operate across the city 24/7 and charge passengers for rides.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/7O3A1711.jpeg?w=2500" alt="A group of people in purple T-shirts stand before a crowd of picketers." class="wp-image-190086"/><figcaption class="wp-element-caption">Service Employees International Union Local 87 president Olga Miranda, center, and accessibility leaders hold a press conference in support of autonomous vehicles and robotaxis outside the California Public Utilities Commission building in San Francisco on Aug. 10.</figcaption></figure>

Rufus Jeffris, a senior vice president at the business advocacy organization Bay Area Council, said the group’s support of Cruise remains unchanged and declined to comment on the October accident.&nbsp;

Rufus Jeffris, a senior vice president at the business advocacy organization Bay Area Council, said the group’s support of Cruise remains unchanged and declined to comment on the October accident.&nbsp;

“Autonomous vehicle technologies are and will continue to be an important part of our transportation future,” Jeffris wrote in an email to The Standard.&nbsp;

“Autonomous vehicle technologies are and will continue to be an important part of our transportation future,” Jeffris wrote in an email to The Standard.&nbsp;

The Bay Area Council counted Cruise as one of its sponsors for a conference held in November as part of the Asia-Pacific Economic Cooperation summit. A Cruise representative was scheduled to speak on a panel about self-driving cars but was replaced amid heightened scrutiny of the company’s practices. After initially being invited, media members were barred from the event.&nbsp;

The Bay Area Council counted Cruise as one of its sponsors for a conference held in November as part of the Asia-Pacific Economic Cooperation summit. A Cruise representative was scheduled to speak on a panel about self-driving cars but was replaced amid heightened scrutiny of the company’s practices. After initially being invited, media members were barred from the event.&nbsp;

Other organizations gave a full-throated defense for Cruise and self-driving car technology. Tim Elder, the president of the National Federation of the Blind of California, described the media coverage surrounding the October incident “a bit slanted.”

Other organizations gave a full-throated defense for Cruise and self-driving car technology. Tim Elder, the president of the National Federation of the Blind of California, described the media coverage surrounding the October incident “a bit slanted.”

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