Kevin Truong

A little more than a year after a Cruise robotaxi dragged a woman in San Francisco, the company dodged a criminal charge by admitting that it misled federal regulators about what happened.

core/paragraph

A little more than a year after a Cruise robotaxi dragged a woman in San Francisco, the company dodged a criminal charge by admitting that it misled federal regulators about what happened.

Authorities accused Cruise of impeding an investigation into the crash by failing to provide a description or video of the dragging in a meeting with federal transportation officials the morning after the crash. A report submitted later that day also omitted the dragging.

Authorities accused Cruise of impeding an investigation into the crash by failing to provide a description or video of the dragging in a meeting with federal transportation officials the morning after the crash. A report submitted later that day also omitted the dragging.

The General Motors-owned company has agreed to pay a $500,000 fine and accept responsibility for the criminal charges laid out by the U.S. Justice Department. Cruise is also required to cooperate with government investigations, implement a safety compliance program, and provide annual reports on that progress.

The General Motors-owned company has agreed to pay a $500,000 fine and accept responsibility for the criminal charges laid out by the U.S. Justice Department. Cruise is also required to cooperate with government investigations, implement a safety compliance program, and provide annual reports on that progress.

The deferred prosecution deal comes about a month and a half after Cruise was hit with a $1.5 million fine by the National Highway Traffic Safety Administration.

The deferred prosecution deal comes about a month and a half after Cruise was hit with a $1.5 million fine by the National Highway Traffic Safety Administration.

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

sf-standard/related-post

sf-standard/related-posts-container

The pedestrian-dragging incident that touched off the regulatory and criminal probes took place in October 2023, when a woman was thrown in the path of a Cruise vehicle on Market Street in downtown San Francisco. The robotaxi halted, but its sensor system failed to detect that there was a person beneath it, so it wound up <a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">dragging the woman more than 20 feet</a> as it pulled over to the side of the road.

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

The pedestrian-dragging incident that touched off the regulatory and criminal probes took place in October 2023, when a woman was thrown in the path of a Cruise vehicle on Market Street in downtown San Francisco. The robotaxi halted, but its sensor system failed to detect that there was a person beneath it, so it wound up <a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">dragging the woman more than 20 feet</a> as it pulled over to the side of the road.

Under federal regulations, Cruise was required to report such crashes to the National Highway Traffic Safety Administration.

Under federal regulations, Cruise was required to report such crashes to the National Highway Traffic Safety Administration.

Although Cruise later provided the video to NHTSA officials, the company failed to correct the incident report in a timely manner.

Although Cruise later provided the video to NHTSA officials, the company failed to correct the incident report in a timely manner.

“Federal laws and regulations are in place to protect public safety on our roads,&#8221; Martha Boersch, the U.S. Attorney’s Criminal Division chief, said in a news release Thursday. &#8220;Companies with self-driving cars that seek to share our roads and crosswalks must be fully truthful in their reports to their regulators.&#8221;

“Federal laws and regulations are in place to protect public safety on our roads," Martha Boersch, the U.S. Attorney’s Criminal Division chief, said in a news release Thursday. "Companies with self-driving cars that seek to share our roads and crosswalks must be fully truthful in their reports to their regulators."

“Federal laws and regulations are in place to protect public safety on our roads,&#8221; Martha Boersch, the U.S. Attorney’s Criminal Division chief, said in a news release Thursday. &#8220;Companies with self-driving cars that seek to share our roads and crosswalks must be fully truthful in their reports to their regulators.&#8221;

The dragging incident threw a wrench in Cruise&#8217;s expansion plans and led to its once-ubiquitous fleet of robotaxis with cutesy names getting pulled from streets nationwide.

The dragging incident threw a wrench in Cruise's expansion plans and led to its once-ubiquitous fleet of robotaxis with cutesy names getting pulled from streets nationwide.

The dragging incident threw a wrench in Cruise&#8217;s expansion plans and led to its once-ubiquitous fleet of robotaxis with cutesy names getting pulled from streets nationwide.

Federal and state officials also launched investigations into the company and how it met disclosure requirements in the wake of the crash. In June, a California Public Utilities Commission judge approved a separate $112,500 settlement to end the agency&#8217;s probe into the dragging.

Federal and state officials also launched investigations into the company and how it met disclosure requirements in the wake of the crash. In June, a California Public Utilities Commission judge approved a separate $112,500 settlement to end the agency's probe into the dragging.

Federal and state officials also launched investigations into the company and how it met disclosure requirements in the wake of the crash. In June, a California Public Utilities Commission judge approved a separate $112,500 settlement to end the agency&#8217;s probe into the dragging.

Several top executives — including founder and CEO Kyle Vogt — resigned or were fired in the aftermath of the crash, and Cruise cut hundreds of jobs as it scaled back.

Several top executives — including founder and CEO Kyle Vogt — resigned or were fired in the aftermath of the crash, and Cruise cut hundreds of jobs as it scaled back.

In September, Cruise announced it would soon return to the Bay Area with mapping vehicles in Sunnyvale and Mountain View — but that each car would have a driver behind the wheel.

In September, Cruise announced it would soon return to the Bay Area with mapping vehicles in Sunnyvale and Mountain View — but that each car would have a driver behind the wheel.

Cruise President Craig Glidden said the company will adhere to the deferred prosecution agreement as it moves forward under new leadership &#8220;and with a firm commitment to transparency with our regulators.&#8221;

Cruise President Craig Glidden said the company will adhere to the deferred prosecution agreement as it moves forward under new leadership "and with a firm commitment to transparency with our regulators."

Cruise President Craig Glidden said the company will adhere to the deferred prosecution agreement as it moves forward under new leadership &#8220;and with a firm commitment to transparency with our regulators.&#8221;

Cruise admits lying to feds about dragging woman in San Francisco

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>.

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.

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>

core/image

<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.

Garrett Leahy

A holiday “booze cruise” turned chaotic late Saturday when dozens of people were not allowed to board and told they would not get refunds, and some allegedly threw bottles and tried to jump onto the boat.

A holiday “booze cruise” turned chaotic late Saturday when dozens of people were not allowed to board and told they would not get refunds, and some allegedly threw bottles and tried to jump onto the boat.

Ticket holder Amy Fan said in a Reddit post that the <a href="https://www.eventbrite.com/e/friendsgiving-booze-cruise-on-the-bay-nov-16th-9pm-til-1230-tickets-1016777367477">“Friendsgiving” event</a> thrown by Skyline Yacht Cruises was overbooked by 60 people, who were turned away and told it was their fault for not being at the dock on time.

Ticket holder Amy Fan said in a Reddit post that the <a href="https://www.eventbrite.com/e/friendsgiving-booze-cruise-on-the-bay-nov-16th-9pm-til-1230-tickets-1016777367477">“Friendsgiving” event</a> thrown by Skyline Yacht Cruises was overbooked by 60 people, who were turned away and told it was their fault for not being at the dock on time.

A video shared with The Standard shows a Skyline Yacht Cruises employee who identifies herself as “Jeanette” initially offering refunds to people left behind on the dock. She later walks back the promise, saying the company will issue a credit for a free cruise if customers send a screenshot of their ticket and their email address. As she tries to speak, one person shouts, “You wasted our time” as others are seen attempting to jump onto the yacht from the dock.&nbsp;

A video shared with The Standard shows a Skyline Yacht Cruises employee who identifies herself as “Jeanette” initially offering refunds to people left behind on the dock. She later walks back the promise, saying the company will issue a credit for a free cruise if customers send a screenshot of their ticket and their email address. As she tries to speak, one person shouts, “You wasted our time” as others are seen attempting to jump onto the yacht from the dock.&nbsp;

core/embed

<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"><div class="wp-block-embed__wrapper">
https://www.reddit.com/r/sanfrancisco/comments/1gtu7yh/brawl_almost_starts_at_hornblower_landing_over/
</div></figure>

<blockquote class="reddit-embed-bq" style="height:500px" ><a href="https://www.reddit.com/r/sanfrancisco/comments/1gtu7yh/brawl_almost_starts_at_hornblower_landing_over/">Brawl almost starts at Hornblower Landing over overbooked cruise </a> by<a href="https://www.reddit.com/user/AndrewClemmens/">u/AndrewClemmens</a> in<a href="https://www.reddit.com/r/sanfrancisco/">sanfrancisco</a></blockquote><script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script>

“You guys cannot jump. You guys cannot jump over,” Jeanette says in the video. “I need you guys to separate from the dock.”

“You guys cannot jump. You guys cannot jump over,” Jeanette says in the video. “I need you guys to separate from the dock.”

A video accompanying the Reddit post shows people pushing customers away from an entry gate leading to the boat as staffers yell, “We have to close this.” “Please, we have tickets,” a woman says as a man appears to push her away from the gate.&nbsp;

A video accompanying the Reddit post shows people pushing customers away from an entry gate leading to the boat as staffers yell, “We have to close this.” “Please, we have tickets,” a woman says as a man appears to push her away from the gate.&nbsp;

Fan said she saw three people throw bottles at the ship’s hull. A representative for Skyline Yacht Cruises told The Standard no one threw bottles and claimed police were never called.

Fan said she saw three people throw bottles at the ship’s hull. A representative for Skyline Yacht Cruises told The Standard no one threw bottles and claimed police were never called.

The San Francisco Police Department confirmed that officers responded at 10:06 p.m. to a report of a verbal dispute at Embarcadero Street between Howard and Folsom. When officers arrived, they found there had been a pay dispute, and no police assistance was needed, the department said.

The San Francisco Police Department confirmed that officers responded at 10:06 p.m. to a report of a verbal dispute at Embarcadero Street between Howard and Folsom. When officers arrived, they found there had been a pay dispute, and no police assistance was needed, the department said.

Fan, who was among those not allowed to board, said she arrived at Pier 3 seven minutes into the cruise’s 30-minute boarding period.

Fan, who was among those not allowed to board, said she arrived at Pier 3 seven minutes into the cruise’s 30-minute boarding period.

Because of the overbooking snafu, Fan and 29 other guests for her friend’s birthday party were left behind. Each paid $27 for tickets.

Because of the overbooking snafu, Fan and 29 other guests for her friend’s birthday party were left behind. Each paid $27 for tickets.

“It was awful,” Fan said. “This was my friend’s 30th birthday party, and she had had a hard week.”

“It was awful,” Fan said. “This was my friend’s 30th birthday party, and she had had a hard week.”

<figure class="wp-block-embed is-type-video is-provider-vimeo wp-block-embed-vimeo wp-embed-aspect-9-16 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
https://vimeo.com/1030954585
</div><figcaption class="wp-element-caption">An organizer from Skyline Yacht Cruises who identifies herself as “Jeanette” addresses passengers who bought tickets but were not allowed to board. | Courtesy Amy Fan</figcaption></figure>

Skyline Yacht Cruises denied overbooking the cruise in an interview and a text message to a passenger that was reviewed by The Standard.&nbsp;

Skyline Yacht Cruises denied overbooking the cruise in an interview and a text message to a passenger that was reviewed by The Standard.&nbsp;

The company representative, who declined to provide their name, claimed that the passengers who were left behind didn’t follow instructions on the <a href="https://www.eventbrite.com/e/friendsgiving-booze-cruise-on-the-bay-nov-16th-9pm-til-1230-tickets-1016777367477">Eventbrite page</a> and didn’t show up early enough to board.&nbsp;

The company representative, who declined to provide their name, claimed that the passengers who were left behind didn’t follow instructions on the <a href="https://www.eventbrite.com/e/friendsgiving-booze-cruise-on-the-bay-nov-16th-9pm-til-1230-tickets-1016777367477">Eventbrite page</a> and didn’t show up early enough to board.&nbsp;

“There is a cutoff time. If you aren’t on the boat on time, we have to leave,” the representative said. “We can’t override whatever plans the captain has in place. All we do is sell the tickets and provide music.”

“There is a cutoff time. If you aren’t on the boat on time, we have to leave,” the representative said. “We can’t override whatever plans the captain has in place. All we do is sell the tickets and provide music.”

The Eventbrite page said boarding begins at 9 p.m. and ends at 9:30 p.m., and sales are final, with no refunds or exchanges. Fan said the 30-minute boarding period for such a large cruise — there were 452 people aboard, according to the company — is poor planning and bound to result in people being left behind.&nbsp;

The Eventbrite page said boarding begins at 9 p.m. and ends at 9:30 p.m., and sales are final, with no refunds or exchanges. Fan said the 30-minute boarding period for such a large cruise — there were 452 people aboard, according to the company — is poor planning and bound to result in people being left behind.&nbsp;

Getting 450 people onto a ship in 30 minutes means having someone board every four seconds, with security checking bags.

Getting 450 people onto a ship in 30 minutes means having someone board every four seconds, with security checking bags.

The ship used for the event, San Francisco Spirit, is meant to carry only 400 passengers, according to the <a href="https://www.cityexperiences.com/san-francisco/city-cruises/our-fleet/san-francisco-spirit/">website</a> of operator <a href="https://sfstandard.com/2024/02/22/alcatraz-cruise-operator-hornblower-bankruptcy/">Hornblower Group</a>, not the 452 who were onboard. The company did not respond to a request for comment.

Hornblower&#8217;s SOS call: Sunk by the pandemic, Alcatraz cruise operator files for bankruptcy

The ship used for the event, San Francisco Spirit, is meant to carry only 400 passengers, according to the <a href="https://www.cityexperiences.com/san-francisco/city-cruises/our-fleet/san-francisco-spirit/">website</a> of operator <a href="https://sfstandard.com/2024/02/22/alcatraz-cruise-operator-hornblower-bankruptcy/">Hornblower Group</a>, not the 452 who were onboard. The company did not respond to a request for comment.

Booze cruise organizer blames passengers for chaos

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.

Search Results for: cruise

Cruise admits lying to feds about dragging woman in San Francisco

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

Booze cruise organizer blames passengers for chaos

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

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