Are investors, regulators, and the public losing trust in AVs?

Traffic incidents involving autonomous vehicles and an inability to balance safety, cost and coverage is putting the sector in jeopardy. By Will Girling

On 14 December 2023, autonomous vehicle (AV) developer Cruise announced it was cutting 900 jobs, approximately 25% of its workforce. It was the latest in a series of negative events for the GM-owned company, including the dismissal of nine executives, following an ongoing investigation into a San Francisco traffic incident that occurred on 2 October. Having already been struck by another vehicle, a pedestrian was then dragged 20 feet by a Cruise robotaxi.

Cruise suspended its US operations on 26 October and announced it would cooperate with authorities investigating the matter. However, on 1 December, the California Public Utilities Commission (CPUC) accused it of "misleading the Commission” and “making misleading public comments regarding its interactions with the Commission.” The CPUC contends Cruise omitted details that its AV was engaged in a pullover manoeuvre during the incident.

In September, during The Autonomous 2023, Carter Stern, Director of Global Affairs at Cruise, opined that AVs could be a force for increasing road safety—a frequently cited benefit among adherents. But could reactions to the controversy ultimately have negative repercussions for the entire sector?