The problems at
General Motors
’ robotaxi business Cruise seem to be getting worse. But the company said its latest personnel shake-up was needed to improve safety and rebuild public trust.
Cruise confirmed that nine employees have departed the company amid its investigation into an incident on Oct. 2 that left a pedestrian injured. The employees leaving Cruise include several “key leaders” across its legal, government affairs, commercial operations and safety departments, the company told Barron’s in an emailed statement.
The departures follow the company’s initial inquiry into the incident, which led to the suspension of its license in California, and Cruise’s response to it. A person ended up under a Cruise taxi and was dragged several feet before the vehicle stopped, Barron’s previously reported.
Cruise has since halted all its driverless and manual operations and committed to a safety review using third-party consultants.
The developments will be closely watched by GM Chief Executive Mary Barra, who said last week the company will decide on the next steps for Cruise once the investigation has been completed.
GM has previously said Cruise could generate $50 billion in annual sales by 2030.
Cruise did not identify the departing executives, but The Wall Street Journal reported they included David Estrada, a senior vice president of government affairs, Jeff Bleich, Cruise’s chief legal and policy officer, and Chief Operating Officer Gil West, a former Delta Air Lines executive who was brought in to run Cruise’s commercial operations, according to people familiar with the matter.
The clear-out comes after Cruise CEO and co-founder Kyle Vogt resigned last month, followed by the company’s other co-founder Daniel Kan a day later.
“We are committed to full transparency and are focused on rebuilding trust and operating with the highest standards when it comes to safety, integrity, and accountability, and believe that new leadership is necessary to achieve these goals,” a Cruise spokesperson said.
Cruise intends to restart driverless operations in just one city initially, but hasn’t given a timeline for when this will happen.
GM stock pointed 0.3% higher ahead of the open Thursday,
Ford
rose 0.3% and
Tesla
climbed 1.1%.
Write to Callum Keown at [email protected]
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