General Motors announced the closure of Cruise LLC's autonomous robotaxi division due to US$10 billion in losses, compounded by safety incidents including a severe pedestrian injury and a false reporting scandal resulting in a US$500,000 fine.

General Motors announced it will retreat from the robotaxi business by stopping funding its Cruise autonomous vehicle unit, prompting a restructuring that includes significant layoffs and leadership changes. This decision follows concerns over financial losses, safety incidents, and a controversial cover-up of crash details.

Cruise, a GM-owned driverless car service, admitted failings in managing an accident in October 2023 where one of its autonomous vehicles dragged a pedestrian. The company acknowledged inadequate leadership, uncoordinated internal processes, and misleading communication with regulators, resulting in its permit being revoked by California. Federal prosecutors are now investigating the incident.

Cruise LLC is facing potential fines after a ruling by the California Public Utilities Commission revealed that the company, through an email from its government affairs staff on October 2, failed to disclose critical information about an incident in which one of its autonomous vehicles dragged a pedestrian. This omission has raised concerns over the company's transparency and regulatory compliance as it seeks to rebuild trust with regulators.

Following an October 2, 2023 incident in San Francisco where a Cruise autonomous vehicle was involved in a severe crash that injured a pedestrian, federal and state agencies launched investigations into the company. The incident, marked by leadership resignations and a failure to fully disclose critical evidence to regulators, has raised serious concerns about Cruise's accountability and corporate practices.