Cruise CEO Kyle Vogt resigns amid US safety review
Kyle Vogt, General Motors's (GM) autonomous taxi division Cruise's CEO, has stepped down amid recent upheaval and a safety evaluation of its US fleet. Vogt's departure follows an October 2 incident where a Cruise self-driving taxi dragged a pedestrian. In an email to employees, Vogt announced, "I have resigned from my position," without providing additional details. He had previously apologized to staff for the company's issues and accepted responsibility for Cruise's current predicament.
Increased scrutiny on Cruise leadership
Vogt's exit occurs as GM and the Cruise board intensify their examination of the unit's leadership. On November 13, the board convened and appointed GM General Counsel Craig Glidden as Cruise's chief administrative officer. They also revealed plans to hire an independent safety expert to evaluate safety procedures and culture. GM CEO Mary Barra informed staff that Glidden will act as Co-President alongside Mo Elshenawy, who will also assume the role of Chief Technology Officer.
Changes in Cruise board and regulatory investigations
Jon McNeill, GM director since 2022, has been appointed Vice Chairman of the Cruise board, joining Barra, who serves as chair. In October, the California Department of Motor Vehicles demanded Cruise withdraw its autonomous vehicles from state roads, citing public danger and misrepresentation of safety. The National Highway Traffic Safety Administration also initiated an inquiry into pedestrian hazards at Cruise. The Cruise board enlisted law firm Quinn Emanuel to examine management's reactions to regulators investigating the October 2 accident.
Cruise's future plans and financial impact
Despite recent challenges, Barra has informed investors that Cruise could potentially generate $50 billion in revenue by 2030. However, the venture lost over $700 million in Q3 this year while planning to extend operations to 15 US cities. Cruise rivals Alphabet's Waymo in launching self-driving vehicles and has been testing hundreds in multiple US cities, including San Francisco. Following his resignation, Vogt shared his optimism for Cruise's future in a social media post, stating, "Cruise is still just getting started."
