General Motors shares: Cruise robotaxi unit could face fines
General Motors’ Cruise robotaxi unit could face sanctions and $1.5 million in fines over its failure to disclose details of an accident. IGTV financial analyst @AngelineOng looks at what’s at stake.
(Video Transcript)
GM shares drop slightly
General Motors, its Cruze robo-taxi unit, could face fines of up to $1.5 million and additional sanctions over its failure to disclose details of an accident that happened in October. This was when a robo-taxi dragged a pedestrian 20 feet after being struck by another vehicle, according to a California agency.
Last month, as you probably know, Cruze paused all driverless and supervised car trips in the US and expanded a safety review of its robo-taxi. GM CEO Barra has told the media that she's waiting for results of an external review and says that they'll work through the challenges they have at Cruze. But not much more than that.
Future investment in Cruze unclear
She did not say how much money GM is willing to spend on Cruze going forward and stopped short of offering an opinion on whether or not she thought regulators have treated Cruze more sharply or harshly than the Tesla Autopilot.
Also bringing up General Motors shares for you, they're all sessions on the IG platform. Not much, it's just slightly lower as we speak.
The California Public Utilities Commission has ordered Cruze to appear at a hearing on 6 February 2024 for misleading the commission through omission regarding the extent and seriousness of that accident that I mentioned earlier and making misleading public comments regarding its interactions with the commission.
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