In a swift turn of events, self-driving startup Cruise transitioned from a promising success story to a cautionary tale in just one night. Discover the true sequence of events that unfolded and learn how GM is now working diligently to salvage its substantial $10 billion investment.

On the serene evening of October 2 in San Francisco, the city's streets were enveloped in a tranquil ambiance. The sky above was adorned with moderate clouds, setting the stage for the commencement of Fleet Week activities at Sunset Library. However, amidst this calm setting, a sudden and impactful event transpired in the Tenderloin neighborhood at precisely 9:29 p.m.

It was at this moment that a pedestrian made a fateful decision to step out onto the street, navigating the intersection of Fifth and Market. In an unfortunate turn of events, the individual was struck by a green Nissan Sentra sedan, marking the beginning of a chain of consequences that would resonate far beyond the immediate vicinity.

The repercussions of this incident would extend all the way to one of the largest corporations on the planet—GM. Following the initial collision with the pedestrian, known as "Panini," the unfolding events would trigger a series of responses and actions within the corporate realm, ultimately leading to a significant impact on GM's operations and reputation.

Prior to the conclusion of October 2023, regulatory authorities raised allegations against Cruise, asserting that the company had deliberately withheld crucial information regarding the incident from them. In response to this revelation, California's Department of Motor Vehicles took decisive action by revoking Cruise's operational permit. This development prompted Cruise to take the proactive step of voluntarily removing its vehicles from the streets across the United States.

In the wake of these events, GM, which had maintained a relatively hands-off approach to Cruise's operations despite maintaining close communication with the company's senior leadership and operational teams, swiftly intervened. GM embarked on a strategic overhaul by replacing a significant portion of Cruise's management team, restructuring its board of directors, and implementing a series of operational changes aimed at restoring trust and accountability within the organization.

Two years ago, General Motors CEO Mary Barra, exuding a sense of excitement and curiosity, donned a stylish black leather jacket as she approached a white and orange Chevy Bolt that was autonomously navigating its way to pick her up. As the vehicle came to a stop at the curb, Barra peered through the window, only to find no human driver behind the wheel.

Overwhelmed by the experience, Barra expressed her amazement upon settling into the back seat of the Cruise robo-taxi, affectionately referred to by Cruise employees as "Tostada." Seated beside her was Kyle Vogt, the co-founder of Cruise and at that time serving as the company's president and chief technology officer. Despite the necessity of wearing masks due to prevailing circumstances, Barra's enthusiasm and wonder at the cutting-edge technology were palpable.

Cruise's vision of self-driving vehicles represented a cutting-edge technology that held the potential to provide General Motors with a competitive advantage and set it apart in the market, potentially even revitalizing the image of the legacy automaker and making it more appealing to consumers. In a strategic move to capitalize on this opportunity, GM made a substantial investment of $592 million in Cruise in 2017, a decision that was followed by a rapid expansion of Cruise's workforce, effectively doubling its staff within the first year of GM's acquisition.

Over the course of eight years, Cruise experienced remarkable growth, expanding its workforce to nearly 4,000 employees, in addition to a significant number of contract workers, spread across key locations such as San Francisco, Seattle, Phoenix, Austin, Dubai, and Japan. By 2022, Cruise had made significant strides in the autonomous vehicle space, surpassing expectations and achieving notable milestones in its quest to revolutionize transportation.