GM's Cruise Fined $112,500 By California Over Self-Driving Car Crash: Report
General Motors Co. (NYSE:GM) is reportedly facing the maximum fine from California regulators due to delayed reporting of an accident involving one of its Cruise self-driving vehicles.
The incident has prompted increased scrutiny of autonomous vehicle safety, leading to a $112,500 penalty for the automaker, reported Reuters.
Cruise failed to provide timely information to the California Public Utilities Commission (CPUC) about an accident involving one of its vehicles last year.
The fine amounts to $7,500 for each of the 15 days the company withheld the information. Alongside other autonomous vehicle companies like Alphabet Inc’s (NASDAQ:GOOGL) Waymo and Amazon.com Inc’s (NASDAQ:AMZN) Zoox, Cruise has faced significant regulatory scrutiny due to safety concerns and multiple crashes involving their vehicles.
The company will now be required to submit collision reports to both the CPUC and the National Highway Traffic Safety Administration (NHTSA) for incidents occurring in California.
The CPUC’s decision follows a probe into Cruise’s delayed disclosure of a pedestrian accident in San Francisco on October 2.
In this incident, a pedestrian was hit by another car and subsequently struck again by a Cruise robotaxi. The event led to the suspension of Cruise’s permit to operate in California and a recall of its vehicles by the NHTSA.
Despite the suspension in California, Cruise resumed operations in April with a small fleet of human-driven vehicles in Phoenix, Arizona. However, its authority to provide passenger service in autonomous vehicles remains revoked.
Cruise accrued expenses of $400 million in the first quarter as compared to the $800 million in the quarter before.
The company expects the unit’s full-year expenses to be around $1.7 billion.
GM stock has gained about 29% in the past year. Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and Invesco S&P 500 Pure Value ETF (NYSE:RPV).
Price Action: GM shares closed higher by 0.70% at $47.77 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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