California regulators have accused General Motors' San Francisco robotaxi service, Cruise, of covering up an accident involving one of its driverless cars. The state may now add a fine of approximately $1.5 million to the recent suspension of Cruise's California license. The potential penalty was revealed in documents filed by the California Public Utilities Commission last week. The commission has ordered Cruise to appear at an evidentiary hearing on February 6th to determine if the company misled regulators about the incident. The accident occurred on the evening of October 2nd when one of Cruise's driverless cars struck a pedestrian who had already been hit by another vehicle driven by a human.

This hearing comes just six months after the commission authorized Cruise's robotaxi service to charge passengers for rides throughout San Francisco, despite objections from city officials who believed the driverless cars were prone to malfunctioning. Just three weeks after the October accident, the California Department of Motor Vehicles suspended Cruise's license to operate in the state, dealing a major blow to both Cruise and its parent company GM. GM had already suffered significant losses during the development of its driverless service, which was expected to generate $1 billion in revenue by 2025 as it expanded beyond San Francisco. The accident, which critically injured the pedestrian, also led to the recent resignation of Cruise's CEO and co-founder, Kyle Vogt.

In response to the allegations, GM CEO Mary Barra acknowledged the need for transparency and a better relationship with regulators, stating that the incident has helped the company understand the importance of these factors. Barra highlighted the reorganization of Cruise's management, including its government-relations and legal teams, as evidence of progress. Barra emphasized the potential for driverless technology to improve road safety and expressed the company's focus on resolving the situation.

Cruise issued a statement pledging to respond promptly to the concerns raised by the Public Utilities Commission. The company has already hired an external law firm to assess its handling of the accident. The most significant questions surrounding the incident revolve around Cruise's handling of a video that allegedly shows one of its robotaxis dragging the pedestrian for 20 feet before coming to a stop. According to the regulatory filing, Cruise did not provide the video footage until October 19th, more than two weeks after the accident. The Public Utilities Commission claims this constitutes a cover-up that spanned 15 days, potentially exposing Cruise and GM to fines of $100,000 per day, or a total of $1.5 million.

Cruise has expressed its commitment to rebuilding trust with regulators and assures that it will respond promptly to the concerns raised by the commission. The company's actions in response to this incident will play a crucial role in determining its future relationship not only with regulators but also with the public.