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General Motors' (GM) Cruise to Pay $112K to Restart Operation
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General Motors’ (GM - Free Report) self-driving car subsidiary, Cruise, agreed to pay a $112,500 fine for failing to fully disclose details about an accident involving one of its robotaxis last year. This settlement allows Cruise to avoid litigation and resume operations in California.
Cruise and other self-driving vehicle companies like Alphabet Inc.'s (GOOG - Free Report) Waymo and Amazon's Zoox have faced intense scrutiny from regulators due to safety concerns following multiple crashes involving their vehicles.
Per the regulator, Cruise will pay $7,500 for each of the 15 days during which it withheld information about the incident.
In October 2023, a Cruise robotaxi was involved in an accident where it ran over a pedestrian who had been thrown into its path by another vehicle. The robotaxi then dragged the pedestrian 20 feet during a pullover maneuver. Cruise’s staff failed to disclose these details during the investigations, leading to the revocation of the company's permits for operating driverless vehicles in California by both the California Public Utilities Commission (CPUC) and the Department of Motor Vehicles.
General Motors’ subsidiary has implemented several corrective measures to address the CPUC's concerns following the incident. It hired a law firm, Quinn Emanuel, for an internal investigation, enhancing corporate transparency and making personnel changes, such as the departure of former CEO Kyle Vogt.
Per the commission, Cruise has owned up to its past mistakes and assured greater transparency in future dealings with the agency.
Per the settlement, Cruise must regularly share incident information with the CPUC, including increased collision reporting and monthly reports on incidents involving stopped autonomous vehicles that need physical retrieval. The company has been praised for seeking a swift resolution instead of engaging in lengthy legal processes.
GM’s subsidiary has been gradually returning to public roads in states with less regulatory supervision. Since April, the company has brought mini-fleets into operation with human safety operators in Phoenix, Houston and Dallas for mapping and testing purposes. Like Waymo, which is rapidly expanding its footprints in California, Cruise may adopt a similar approach. Cruise has an active permit from the Department of Motor Vehicles to test its vehicles with a safety driver.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved by 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 6 cents in the past 60 days. The EPS estimates for 2025 have moved up 15 cents in the past 30 days.
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General Motors' (GM) Cruise to Pay $112K to Restart Operation
General Motors’ (GM - Free Report) self-driving car subsidiary, Cruise, agreed to pay a $112,500 fine for failing to fully disclose details about an accident involving one of its robotaxis last year. This settlement allows Cruise to avoid litigation and resume operations in California.
Cruise and other self-driving vehicle companies like Alphabet Inc.'s (GOOG - Free Report) Waymo and Amazon's Zoox have faced intense scrutiny from regulators due to safety concerns following multiple crashes involving their vehicles.
Per the regulator, Cruise will pay $7,500 for each of the 15 days during which it withheld information about the incident.
In October 2023, a Cruise robotaxi was involved in an accident where it ran over a pedestrian who had been thrown into its path by another vehicle. The robotaxi then dragged the pedestrian 20 feet during a pullover maneuver. Cruise’s staff failed to disclose these details during the investigations, leading to the revocation of the company's permits for operating driverless vehicles in California by both the California Public Utilities Commission (CPUC) and the Department of Motor Vehicles.
General Motors’ subsidiary has implemented several corrective measures to address the CPUC's concerns following the incident. It hired a law firm, Quinn Emanuel, for an internal investigation, enhancing corporate transparency and making personnel changes, such as the departure of former CEO Kyle Vogt.
Per the commission, Cruise has owned up to its past mistakes and assured greater transparency in future dealings with the agency.
Per the settlement, Cruise must regularly share incident information with the CPUC, including increased collision reporting and monthly reports on incidents involving stopped autonomous vehicles that need physical retrieval. The company has been praised for seeking a swift resolution instead of engaging in lengthy legal processes.
GM’s subsidiary has been gradually returning to public roads in states with less regulatory supervision. Since April, the company has brought mini-fleets into operation with human safety operators in Phoenix, Houston and Dallas for mapping and testing purposes. Like Waymo, which is rapidly expanding its footprints in California, Cruise may adopt a similar approach. Cruise has an active permit from the Department of Motor Vehicles to test its vehicles with a safety driver.
Zacks Rank & Key Picks
GM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Blue Bird Corporation (BLBD - Free Report) and American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved by 63 cents and 69 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 6 cents in the past 60 days. The EPS estimates for 2025 have moved up 15 cents in the past 30 days.