Cruise is grappling with the recent departures of its top executives, occurring shortly after California’s DMV halted its robotaxi service, citing safety concerns.
Kyle Vogt, the CEO, resigned last Sunday, and Chief Product Officer Daniel Kan, also a co-founder, followed suit on Monday, as reported by Reuters. These exits come amidst heightened challenges for Cruise.
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The reasons behind the co-founders’ departure remain undisclosed by Cruise.
Speculation suggests their exit may be linked to increased scrutiny after an October incident in San Francisco. A woman was hit by another vehicle and pushed into the path of a Cruise robotaxi. Although the robotaxi attempted to brake, it still collided with the pedestrian. After stopping briefly, the robotaxi moved 20 feet further to pull over, inadvertently dragging the pedestrian in the process.
Following this, the California DMV revoked Cruise’s permit for driverless operations in late October, prompting the company to suspend its robotaxi services across the country.
Cruise’s robotaxi service, also operational in Austin and Phoenix, had expansion plans for Dallas and Houston in 2023, with testing slated to begin in Tokyo.
General Motors, Cruise’s primary investor and supplier of vehicles for its fleet, reaffirmed its commitment to the venture despite recent setbacks. Since early 2020, GM’s investment in Cruise has neared $6 billion, with significant contributions from Honda, Microsoft, and Walmart as well.
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Frequently Asked Questions (FAQs) about Cruise Leadership Change
Why did Cruise’s CEO and Chief Product Officer resign?
Cruise’s CEO Kyle Vogt and Chief Product Officer Daniel Kan, who are also co-founders of the company, resigned following the suspension of their robotaxi service in California. This suspension was due to safety concerns raised by the state’s DMV after an incident in San Francisco.
What incident led to the suspension of Cruise’s robotaxi service?
The suspension of Cruise’s robotaxi service came after a safety incident in San Francisco in October. A pedestrian was hit by another vehicle and then came into the path of a Cruise robotaxi. Despite the robotaxi’s attempt to brake, it collided with the pedestrian and inadvertently dragged them while trying to pull over.
What action did the California DMV take against Cruise?
The California Department of Motor Vehicles (DMV) revoked Cruise’s permit for operating its robotaxis without a safety driver. This decision came in late October, following the accident involving a pedestrian in San Francisco.
Are there any plans for Cruise’s robotaxi service to expand?
Before the suspension, Cruise had plans to expand its robotaxi service to Dallas and Houston in 2023 and to start testing in Tokyo. The service was already operational in parts of Austin and Phoenix.
Who are the major investors in Cruise?
General Motors is the primary backer of Cruise, having invested nearly $6 billion since early 2020. Other significant investors include Honda, Microsoft, and Walmart. Despite the recent setbacks, GM has reaffirmed its commitment to Cruise.
More about Cruise Leadership Change
- Cruise’s CEO and product chief both quit – Reuters
- California DMV Revokes Cruise’s Robotaxi Permit – The Verge
- General Motors’ Investment in Cruise – CNBC
3 comments
gm stayin’ strong with Cruise, big investor. other compnies in too. robotaxi future still bright?
wow, kyle vogt & daniel kan quittin’ Cruise? accidents hapen, but safety important. hope Cruise bounce back!
DMV pullin’ the plug, safety first. huge deal for Cruise. GM’s got deep pockets, they’ll make it work.