CRUISE, GM'S ROBOTAXI SERVICE, SUSPENDS ALL DRIVERLESS OPERATIONS NATIONWIDE

Cruise, the autonomous vehicle unit owned by General Motors, is suspending driverless operations nationwide days after regulators in California found that its driverless cars posed a danger to public safety.

The California Department of Motor Vehicles this week revoked the license for Cruise, which recently began transporting passengers throughout San Francisco.

Cruise is also being investigated by U.S. regulators after receiving reports of potential risks to pedestrians and passengers.

“We have decided to proactively pause driverless operations across all of our fleets while we take time to examine our processes, systems, and tools and reflect on how we can better operate in a way that will earn public trust,” Cruise wrote on X, the platform formerly known as Twitter.

The choice to suspend its driverless services isn’t related to any new on-road incidents, Cruise added. Human-supervised operations of Cruise’s autonomous vehicles, or AVs, will continue — including under California’s indefinite suspension.

General Motors Co., which has ambitious goals for Cruise, has taken a significant hit this week. The Detroit automaker had been expecting annual revenue of $1 billion from Cruise by 2025 — a big jump from the $106 million in revenue last year.

Cruise has also tested a robotaxi service in Los Angeles, as well as cities like Phoenix and Austin, Texas.

While the California Department of Motor Vehicles didn’t elaborate on specific reasons for its suspension of Cruise’s license this week, the agency charged Cruise with misrepresenting safety information about the autonomous technology in its vehicles. The revocation followed a series of incidents that heightened concerns about the hazards and inconveniences caused by Cruise’s robotaxis.