The Cruise robotaxi division of General Motors (NYSE:GM) is facing potential fines totaling $1.5 million, as well as further penalties, or not revealing specifics of an October 2 accident.
In this incident, a pedestrian was dragged by a robotaxi for 20 feet after being hit by another vehicle, a California agency said.
Separately, GM's CEO Mary Barra mentioned on Monday that the company's external examination of Cruise's safety measures will continue until the first quarter of 2024.
As part of two external reviews, the company is also evaluating Cruise's approach towards dealing with regulators and first responders. "We will be transparent. I am not going to rush either of them," stated Barra.
Last month, Cruise halted all driverless and supervised car journeys across the United States and broadened its examination of robotaxis for safety concerns. Additionally, CEO Kyle Vogt and Chief Product Officer Daniel Kan both resigned from their positions.
According to a document dated last Friday, the California Public Utilities Commission (CPUC) has summoned Cruise to attend a hearing on February 6. The order was issued by an administrative law judge and a commissioner from CPUC.
The company faces allegations of "misleading the Commission through omission regarding the extent and seriousness of the accident" and "making misleading public comments regarding its interactions with the commission."
The California commission holds the power to impose fines of up to $100,000 per day along with additional penalties for any violations committed by a public utility. The CPUC, in its ruling issued on Friday, mentioned that Cruise took 15 days to provide a complete report of the accident. Consequently, this delay could result in a potential fine amounting to as much as $1.5 million.
GM has until Dec. 18 to hand-deliver a "verified statement" including facts and arguments concerning CPUC's charges.
Shares of GM are down 0.18% in pre-market trading on Tuesday.