In a recent development, the California Public Utilities Commission (CPUC) has threatened Cruise, the driverless taxi company owned by General Motors, with fines and sanctions. This action comes as a result of Cruise allegedly withholding crucial information and making misleading statements regarding an accident that occurred in October.

According to CPUC administrative law judge Robert Mason, Cruise failed to disclose to the commission that a pedestrian struck by a Cruise vehicle on October 2 was dragged for 20 feet before the car came to a stop. The judge cited testimony from a CPUC analyst who was first informed of the incident. Cruise spokesperson Jose Alvarado's description of the accident was found to be incomplete, omitting the fact that the vehicle had engaged in a pullover maneuver, resulting in the pedestrian being dragged at a speed of 7 mph.

Moreover, Cruise is accused of withholding video evidence of the collision from both the California Department of Motor Vehicles (DMV) and CPUC until October 18. Judge Mason stated that Cruise's failure to provide an accurate and timely account misled the DMV and CPUC into believing they had received the full extent of the incident.

The judge also highlighted that Cruise's public statement on the matter, which the company removed from its website "out of respect to ongoing regulatory engagement," was deemed misleading. Cruise had claimed to have proactively shared information with the DMV, CPUC, and the National Highway Traffic Safety Administration (NHTSA), when in fact, they had withheld information for 15 days.

As a result of these actions, Cruise has until February 6 to justify why it should not be fined, penalized, or face other regulatory sanctions. The potential penalties include fines of up to $105,000 per violation of California's public utilities code, fines up to $7,500 per day, and additional actions.

This incident adds to the challenges Cruise has been facing. A separate pedestrian collision in August also triggered an NHTSA investigation into the company's safety record. By October 24, the California DMV had suspended Cruise's license to operate driverless taxis in the state, partly due to the misrepresentations mentioned in Judge Mason's decision. Shortly after, Cruise announced a pause on all driverless operations.

Cruise has expressed its commitment to rebuilding trust with regulators and has assured that it will respond to the CPUC's concerns in a timely manner. The outcome of the upcoming hearing will determine the extent of the fines and sanctions imposed on the company.