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.

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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>

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<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>

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

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.

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

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.

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

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>

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<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.”

“I’ll note that this incident was caused by a human hit-and-run driver,” Elder wrote in an email to The Standard. “This incident would likely not have occurred if the vehicle that initially struck the pedestrian had been an AV.”

“I’ll note that this incident was caused by a human hit-and-run driver,” Elder wrote in an email to The Standard. “This incident would likely not have occurred if the vehicle that initially struck the pedestrian had been an AV.”

Sharon Giovinazzo, CEO of LightHouse, a nonprofit organization for the Blind and Visually Impaired, gets into a Waymo autonomous car with her guide dog Pilot, in San Francisco on Monday, August 7, 2023. Driverless vehicle companies such as Waymo and Cruise have highlighted the support they have from people with disabilities.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/12/disabledrobotaxisupport080823_12.jpg?w=2500" alt="A person ducks into a vehicle with a seeing-eye dog." class="wp-image-228895"/><figcaption class="wp-element-caption">Sharon Giovinazzo, CEO of LightHouse, a nonprofit organization for the blind and visually impaired, gets into a Waymo autonomous car with her guide dog Pilot on Aug. 7.</figcaption></figure>

The advocacy group’s national arm has previously <a href="https://www.facebook.com/NationalFederationoftheBlind/photos/a.10150364849919248/10158837278539248/?type=3">thanked Cruise on social media</a> for being a donor to the organization. Cruise also sponsored the organization’s initiative in 2021 called the <a href="https://nfb.org/about-us/press-room/cruise-sponsor-racecar-driver-dan-parker-blind-driver-challenge">“Blind Driver Challenge.”</a>

The advocacy group’s national arm has previously <a href="https://www.facebook.com/NationalFederationoftheBlind/photos/a.10150364849919248/10158837278539248/?type=3">thanked Cruise on social media</a> for being a donor to the organization. Cruise also sponsored the organization’s initiative in 2021 called the <a href="https://nfb.org/about-us/press-room/cruise-sponsor-racecar-driver-dan-parker-blind-driver-challenge">“Blind Driver Challenge.”</a>

Chris MacKenzie, the director of communications at left-leaning pro-business group Chamber of Progress, doubled down on a <a href="https://adage.com/article/marketing-news-strategy/gm-backed-cruise-ad-draws-criticism/2504841">familiar Cruise talking point</a> about the risks of human-operated cars. The Chamber of Progress lists Cruise as one of <a href="https://progresschamber.org/partners/">its corporate partners</a>, meaning it offers financial support to the organization.&nbsp;

Chris MacKenzie, the director of communications at left-leaning pro-business group Chamber of Progress, doubled down on a <a href="https://adage.com/article/marketing-news-strategy/gm-backed-cruise-ad-draws-criticism/2504841">familiar Cruise talking point</a> about the risks of human-operated cars. The Chamber of Progress lists Cruise as one of <a href="https://progresschamber.org/partners/">its corporate partners</a>, meaning it offers financial support to the organization.&nbsp;

“While opponents of AVs have twisted the October incident to lobby against autonomous vehicles, the reality is that human drivers remain San Francisco&#8217;s most dangerous, most deadly vehicle operators,” MacKenzie said in a statement.

“While opponents of AVs have twisted the October incident to lobby against autonomous vehicles, the reality is that human drivers remain San Francisco's most dangerous, most deadly vehicle operators,” MacKenzie said in a statement.

“While opponents of AVs have twisted the October incident to lobby against autonomous vehicles, the reality is that human drivers remain San Francisco&#8217;s most dangerous, most deadly vehicle operators,” MacKenzie said in a statement.

Others hedged their messages of support by acknowledging some of the company’s recent challenges.

Others hedged their messages of support by acknowledging some of the company’s recent challenges.

“We understand with time, research and effort that safety will eventually be optimized and the future of autonomous vehicles will resume,” said Patti Mangan, the executive director at the Fillmore Merchants Association.

“We understand with time, research and effort that safety will eventually be optimized and the future of autonomous vehicles will resume,” said Patti Mangan, the executive director at the Fillmore Merchants Association.

She gave Cruise props for providing demos of its technology and tours of its facility, along with Cruise’s sponsorship of the group’s annual Fillmore Jazz Festival.

She gave Cruise props for providing demos of its technology and tours of its facility, along with Cruise’s sponsorship of the group’s annual Fillmore Jazz Festival.

<h2 class="wp-block-heading" id="h-troubled-and-bothered">‘Troubled and Bothered’</h2>

Only two local organizations that filed letters of support for Cruise—the Golden Gate Restaurant Association and the Potrero Dogpatch Merchants Association—and one state lawmaker, Assemblymember Evan Low (D-Silicon Valley) expressed concern with its operations in the wake of the recent safety issues.

Only two local organizations that filed letters of support for Cruise—the Golden Gate Restaurant Association and the Potrero Dogpatch Merchants Association—and one state lawmaker, Assemblymember Evan Low (D-Silicon Valley) expressed concern with its operations in the wake of the recent safety issues.

Low, who co-chairs the state&#8217;s Technology and Innovation Caucus, wrote in a statement to The Standard: “I fully support the California Department of Motor Vehicles decision to suspend the operating license for Cruise, and fully support the efforts of the California Public Utilities Commission to investigate and hold the company accountable.”

Low, who co-chairs the state's Technology and Innovation Caucus, wrote in a statement to The Standard: “I fully support the California Department of Motor Vehicles decision to suspend the operating license for Cruise, and fully support the efforts of the California Public Utilities Commission to investigate and hold the company accountable.”

Low, who co-chairs the state&#8217;s Technology and Innovation Caucus, wrote in a statement to The Standard: “I fully support the California Department of Motor Vehicles decision to suspend the operating license for Cruise, and fully support the efforts of the California Public Utilities Commission to investigate and hold the company accountable.”

Keith Goldstein, president of the Potrero Dogpatch Merchants Association, said that Cruise pulling its entire fleet “seems appropriate,” adding that Cruise’s return to San Francisco streets will require “a renewed effort on transparency and safety.”

Keith Goldstein, president of the Potrero Dogpatch Merchants Association, said that Cruise pulling its entire fleet “seems appropriate,” adding that Cruise’s return to San Francisco streets will require “a renewed effort on transparency and safety.”

“I was troubled and bothered to learn of the incident involving the Cruise vehicle and especially to learn about their initial response,” Goldstein wrote. “Prior to this, they had been a good community partner and were welcomed by the Potrero Dogpatch merchant community.”

“I was troubled and bothered to learn of the incident involving the Cruise vehicle and especially to learn about their initial response,” Goldstein wrote. “Prior to this, they had been a good community partner and were welcomed by the Potrero Dogpatch merchant community.”

Audience members listen to California Public Utilities Commission (CPUC) Commissioners Genevieve Shiroma, far left, Alice Busching Reynolds, center left, Darcie L. Houck, center right, and John Reynolds, far right, during a hearing in San Francisco on Thursday, August 10, 2023. The hearing will include public comment and votes on two resolutions that would allow autonomous vehicle (AV) and robotaxi companies Cruise and Waymo to operate across San Francisco 24/7 and charge passengers for rides.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/08/17O3A1724.jpg?w=2500" alt="The back of an audience, with one person in a yellow shirt that reads &quot;safer roads.&quot;" class="wp-image-190143"/><figcaption class="wp-element-caption">Audience members listen to members of the California Public Utilities Commission during a hearing in San Francisco on Aug. 10.</figcaption></figure>

Cruise had also been embraced by the Golden Gate Restaurant Association, the city’s restaurant industry group, after what Executive Director Laurie Thomas described as hope for “a cost-effective form of transportation for our employees and our customers, particularly our employees who work late in the evenings.”&nbsp;

Cruise had also been embraced by the Golden Gate Restaurant Association, the city’s restaurant industry group, after what Executive Director Laurie Thomas described as hope for “a cost-effective form of transportation for our employees and our customers, particularly our employees who work late in the evenings.”&nbsp;

But Thomas said the group started to pull back as Cruise incidents started mounting in the city.

But Thomas said the group started to pull back as Cruise incidents started mounting in the city.

&#8220;We are obviously very concerned regarding safety of passengers and pedestrians, and as such we did not offer support … over the summer once the safety concerns surfaced,” Thomas said. “We hope that they can address these critical issues.&#8221;

"We are obviously very concerned regarding safety of passengers and pedestrians, and as such we did not offer support … over the summer once the safety concerns surfaced,” Thomas said. “We hope that they can address these critical issues."

&#8220;We are obviously very concerned regarding safety of passengers and pedestrians, and as such we did not offer support … over the summer once the safety concerns surfaced,” Thomas said. “We hope that they can address these critical issues.&#8221;

Jill Fox, chair of the India Basin Neighborhood Association, shed light on the ways Cruise embedded itself into local organizations to draw more support.

Jill Fox, chair of the India Basin Neighborhood Association, shed light on the ways Cruise embedded itself into local organizations to draw more support.

A driverless Cruise car named Tungsten drives down 10th Street as it crosses its intersection with Market Street in Downtown San Francisco on Tuesday, July 25, 2023. 

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/07/CityFilePhotos072523_18.jpg?w=2500" alt="A Cruise car drives along Market Street in San Francisco." class="wp-image-186373"/><figcaption class="wp-element-caption">A driverless Cruise car named Tungsten heads down 10th Street as it crosses its intersection with Market Street in San Francisco. </figcaption></figure>

“They were very aggressive about coming out to our neighborhood and contacting us and telling us all the good things Cruise could do for us,” she said, adding that the association’s goals for more “transit alternatives” aligned with Cruise’s vision.

“They were very aggressive about coming out to our neighborhood and contacting us and telling us all the good things Cruise could do for us,” she said, adding that the association’s goals for more “transit alternatives” aligned with Cruise’s vision.

Fox explained that Cruise discussed support for the association’s community events, like cleanups and mural installations, or even a financial donation. But those conversations, Fox said, didn’t progress any further.

Fox explained that Cruise discussed support for the association’s community events, like cleanups and mural installations, or even a financial donation. But those conversations, Fox said, didn’t progress any further.

She said the India Basin Neighborhood Association board will be meeting on Monday to discuss the group’s official position on Cruise.&nbsp;

She said the India Basin Neighborhood Association board will be meeting on Monday to discuss the group’s official position on Cruise.&nbsp;

“It&#8217;s disappointing that it wasn’t really what we thought it would be,” Fox said of Cruise’s involvement with the community. “It’s just disappointing, as a person, that, ‘Wow, this company wasn’t telling the truth to its regulators.’”

“It's disappointing that it wasn’t really what we thought it would be,” Fox said of Cruise’s involvement with the community. “It’s just disappointing, as a person, that, ‘Wow, this company wasn’t telling the truth to its regulators.’”

“It&#8217;s disappointing that it wasn’t really what we thought it would be,” Fox said of Cruise’s involvement with the community. “It’s just disappointing, as a person, that, ‘Wow, this company wasn’t telling the truth to its regulators.’”

How Cruise secured support from local groups as it pushed to expand robotaxis

George Kelly

Cruise has offered to pay $75,000 to settle a dispute with the state over whether the robotaxi service misled regulators about the aftermath of an October crash involving one of its driverless cars, according to a document filed Friday.

Cruise has offered to pay $75,000 to settle a dispute with the state over whether the robotaxi service misled regulators about the aftermath of an October crash involving one of its driverless cars, according to a document filed Friday.

The embattled autonomous vehicle (AV) company made the offer in a motion seeking to defer an order on issues raised by the California Public Utilities Commission (CPUC). The state agency has <a href="https://sfstandard.com/2023/12/04/cruise-robotaxi-san-francisco-collision-fine/">accused the company of covering up key details</a> after a Cruise vehicle <a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">struck and dragged a woman</a> nearly 20 feet after she was first hit by a human-driven car in Downtown San Francisco on Oct. 2.

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

The embattled autonomous vehicle (AV) company made the offer in a motion seeking to defer an order on issues raised by the California Public Utilities Commission (CPUC). The state agency has <a href="https://sfstandard.com/2023/12/04/cruise-robotaxi-san-francisco-collision-fine/">accused the company of covering up key details</a> after a Cruise vehicle <a href="https://sfstandard.com/2023/10/02/cruise-robotaxi-crash-woman-injured-san-francisco/">struck and dragged a woman</a> nearly 20 feet after she was first hit by a human-driven car in Downtown San Francisco on Oct. 2.

The General Motors-owned company has been ordered to appear at a Feb. 6 evidentiary hearing on the dispute. It faces up to $1.5 million in fines from the state alone, according to previous filings.

The General Motors-owned company has been ordered to appear at a Feb. 6 evidentiary hearing on the dispute. It faces up to $1.5 million in fines from the state alone, according to previous filings.

READ MORE:&nbsp;<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>

READ MORE:&nbsp;<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 is committed to rebuilding trust with our regulators, increased transparency and cooperation with the CPUC, and providing the data and information the Commission needs to ensure that AV service is safe, equitable and accessible,” a Cruise spokesperson said in a statement to The Standard on Sunday.

“Cruise is committed to rebuilding trust with our regulators, increased transparency and cooperation with the CPUC, and providing the data and information the Commission needs to ensure that AV service is safe, equitable and accessible,” a Cruise spokesperson said in a statement to The Standard on Sunday.

A Cruise self-driving car undergoing testing in the SoMa District of San Francisco on Feb 23, 2020. A subsidiary of GM, Cruise tests and develops autonomous car technology.

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2023/12/gettyimages-1212311840.jpg?w=2500" alt="A Cruise vehicle, which is a driverless, autonomous robotaxi, at a stoplight during the day in San Francisco." class="wp-image-231297"/><figcaption class="wp-element-caption">Cruise has come under fire after one of its driverless vehicles struck and dragged a woman nearly 20 feet in San Francisco on Oct. 2.</figcaption></figure>

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

How Cruise secured support from local groups as it pushed to expand robotaxis

Robotaxi company Cruise offers $75,000 to settle San Francisco crash probe

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

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

How Cruise secured support from local groups as it pushed to expand robotaxis

Robotaxi company Cruise offers $75,000 to settle San Francisco crash probe

Cruise robotaxi lays off 900 workers with San Francisco crash probe ongoing

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