GM’s Cruise CEO Resigns Amid Safety Concerns. It’s Another Wrong Turn.

The CEO of
General Motors
’ robotaxi company Cruise has resigned as the self-driving business looks to get back on the right track amid concerns over safety.

Kyle Vogt, who co-founded the company and oversaw its acquisition by
General Motors
(ticker: GM) in 2016, announced his resignation in a post on X late Sunday. It comes after an accident in early October ultimately led to the suspension of Cruise’s license to operate self-driving taxis in California.

A hit-and-run victim ended up under a Cruise taxi and the vehicle didn’t respond as well as a human driver might have, Barron’s previously reported.

Vogt’s departure is another blow for Cruise and for GM as the auto maker believes Cruise could generate $50 billion in annual sales by 2030.

GM and Cruise didn’t immediately respond to a request for comment early Monday.

Cruise halted its entire driverless fleet nationwide at the end of October to examine its operations and “take steps to rebuild public trust.” GM also paused production of Cruise taxis.

The robotaxi company then announced earlier this month additional steps to improve safety, including an independent expert to conduct a safety assessment. An engineering firm also is investigating the cause of the incident.

“Cruise is still just getting started, and I believe it has a great future ahead. The folks are Cruise are brilliant, driven, and resilient,” Vogt said in his post.

GM needs Cruise to be a success. It now needs to get back on the road without the help of Cruise’s CEO and co-founder.

Write to Callum Keown at [email protected]

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