The California Department of Motor Vehicles on Tuesday suspended robotaxis produced by General Motors Co. autonomous-vehicle unit Cruise from operating in San Francisco, citing safety concerns.
The halt is effective immediately, and there’s no timeline for when Cruise vehicles would be permitted to return to San Francisco streets.
“The DMV has provided Cruise with the steps needed to apply to reinstate its suspended permits, which the DMV will not approve until the company has fulfilled the requirements to the department’s satisfaction,” the DMV said.
The DMV’s decision does not impact the company’s permit for testing with a safety driver, it said.
Cruise did not immediately respond to a request for comment. Cruise and Alphabet Inc.’s
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Waymo have faced criticism in the Bay Area and beyond for expanding their driverless-car programs too fast and have been involved in some high-profile incidents recently.
The California Public Utilities Commission in August voted to allow a broad expansion of robotaxi services in San Francisco despite fierce opposition from city leaders.
CPUC allowed Waymo and Cruise to offer paid driverless rides across San Francisco at any time of day and using an unlimited number of vehicles.
A week after the vote, however, Cruise agreed to a request from the California DMV to cut the number of autonomous vehicles it operates in the city after a crash involving one of Cruise’s driverless taxis and a fire truck.
Waymo and Cruise are at the forefront of the technology, but several other companies, including Apple Inc.
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Nvidia Corp.
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and Tesla Inc.
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hold DMV permits that allow them to engage in autonomous-vehicle testing with a driver in the car.
For GM, the DMV news was Tuesday’s second blow. Earlier in the day, the United Auto Workers expanded its strike to a key GM factory in Arlington, Texas, producing the company’s biggest and flashiest SUVs.
GM earlier Tuesday reported third-quarter results that beat Wall Street expectations, but the stock wavered between gains and losses as the company cut its 2023 outlook, citing the impact of the UAW strike.
Shares of GM are down 15% this year, compared with a gain of around 10% for the S&P 500 index
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This post was originally published on MarketWatch
