Last October, a pedestrian was struck by a Cruise vehicle and dragged 20 feet after initially being hit by a human driver in a hit-and-run accident. Cruise then revealed that his vehicle had struck a pedestrian, but omitted details about how the victim was dragged. As a result, the California Department of Motor Vehicles revoked the GM-backed company's permission to operate self-driving cars in the state, and the National Highway Traffic Safety Administration opened an investigation into the incident.
Today, NHTSA announced the $1.5 million penalty as part of a broader consent agreement with Cruise that includes additional safety and disclosure requirements. The company filed several “incomplete reports” under the agency's standing general regulation, which requires accident reports to be filed within a specified time period based on severity.
In his initial report to NHTSA, filed a day after the incident, Cruise concealed “that the Cruise vehicle had dragged the pedestrian,” the plea agreement states. Ten days later, the company also filed an additional report in which it also failed to disclose the towing incident.
“It is critical for companies developing automated driving systems to prioritize safety and transparency from the outset,” said Sophie Shulman, NHTSA deputy administrator. “NHTSA uses its enforcement authority to ensure that operators and manufacturers comply with all legal obligations and are committed to protecting all road users.”
After his permit was suspended, Cruise hired a law firm to conduct an investigation into what went wrong. The company's report concluded that the company had attempted to send a 45-second video to regulators showing its vehicle towing the victim, but this was hampered by “internet connectivity issues.” Cruise employees also failed to point out the slow-moving incident in subsequent conversations with regulators.
“Our agreement with NHTSA is a step forward in a new chapter for Cruise and builds on our progress under new leadership, improved processes and culture, and a firm commitment to greater transparency with our regulators,” said Steve Kenner, Cruise Chief Safety Officer in a statement. “We look forward to continuing to work closely with NHTSA as we advance our operations in service of our shared goal of improving highway safety.”
But there could be further penalties in the future. The company is also under investigation by the Justice Department and the Securities and Exchange Commission.