In a significant blow to General Motors (GM), the state of California has suspended the testing of Cruise self-driving cars, citing safety concerns following a series of accidents and mishaps. The Department of Motor Vehicles (DMV) in California announced the suspension on Tuesday, becoming the latest regulatory body to express apprehensions about the safety of GM’s autonomous vehicles.
The DMV stated, “When there is an unreasonable risk to public safety, the DMV can immediately suspend or revoke permits,” responding to inquiries from news outlet AFP. The decision marks a setback for GM’s ambitious efforts to establish a presence in the autonomous vehicle industry.
Self-driving cars have stirred mixed reactions from the public, with some welcoming them as an exciting technological development, while others perceive them as a nuisance or hazard on the roads.
The suspension follows a series of accidents involving Cruise vehicles, prompting GM to announce a “pausing of operations” in San Francisco. The setbacks raise questions about the widespread acceptance of self-driving technology.
Automakers, including GM, have invested heavily in the potential of self-driving cars to shape the future of the automotive industry. However, overcoming public and regulatory concerns has proven challenging for some companies.
Previously hailed as a “giant growth opportunity” by GM, Cruise faced a significant financial setback with the company reporting a loss of over $720 million on Cruise in the third quarter of this year. Despite setbacks, GM’s CEO Mary Barra maintained confidence in Cruise, predicting it would generate $50 billion in annual revenue by 2030.
The suspension comes on the heels of a disturbing incident on October 2, where a woman in San Francisco was struck by a hit-and-run car, thrusting her into the path of an oncoming autonomous vehicle operated by Cruise. While the company asserted that the car “braked aggressively to minimise the impact,” the woman was left pinned under the vehicle until paramedics arrived.
