California: GM Robotaxi Cruise Loses License 'Effective Immediately' Over Safety Concerns

Driverless cars may be considered "the future" by many, but General Motors (GM) subsidiary Cruise recently had its license to operate revoked in San Francisco, California after one of its robotaxis ran over somebody accidentally.

This suspension came just two months after the state began allowing Cruise robotaxis to operate. However, after the incident, California's Department of Motor Vehicles released a statement that said Cruise's vehicles are not safe for public operation.

The California DMV added that the company "misrepresented" safety information about its autonomous vehicle technology, according to WIRED.

Its suspension filing also stated that Cruise initially provided footage showing only the collision between its vehicle and the woman, with the DMV citing that the GM subsidiary did not disclose information about its car's subsequent "pull-over maneuver" that led to the woman being dragged by the driverless car after getting hit.

Despite this, Cruise is disputing the DMV's timeline and noted that the company has stayed in close contact with regulators.

"The agency was shown video of the entire incident, including the pull-over, the day after the crash," Cruise spokesperson Navideh Forghani added.

The company will now have to appeal the DMV decision or provide information about how it has addressed its technology's "deficiencies" to get its permit to operate in California back.

Cruise Can Still Operate in California but With a Person Sitting on the Driver's Seat

The suspension is regarded as a big blow to GM, which has had ambitious goals in mind for Cruise. The company had predicted that the robotaxi service would generate $1 billion in revenue by 2025, and this suspension would be a massive setback for the Detroit automaker.

Just days before California regulators moved against Cruise, GM CEO Mary Barra praised its subsidiary and called it a "big breakthrough in the future of transportation."

It is not all bad news for Cruise, though, as the company is still allowed to operate in California, according to the Associated Press. However, a human has to be sitting in the driver's seat to take control whenever something goes wrong, much like the incident that happened in San Francisco.

San Francisco City Attorney David Chiu praised the suspension and called on the Public Utilities Commission to reconsider its decision regarding companies such as Cruise to have an "unfettered" expansion into the state. He added that the commission needs to "come up with a sensible, measured plan for the future based on safety and performance metrics."

GM's Cruise Also Caused Problems in Texas

It is not just California that has been seeing problems from Cruise but also Texas, as the robotaxis seems to be causing massive traffic jams in Austin, according to Electrek.

Videos of these Cruise robotaxis causing road congestion in the streets of Austin have gone viral as annoyed drivers got stuck while one of the vehicles suddenly stopped while doing a turn in the middle of an intersection. Other Cruise robotaxis followed, adding to the congestion.

This article is owned by Latin Post.

Written by: Rick Martin

WATCH: Pedestrian struck and injured by Cruise autonomous vehicle - KTVU FOX 2 San Francisco