The California Department of Motor Vehicles suspended the driverless-car testing permits for Cruise autonomous vehicles on Tuesday. The suspension will also delay its autonomous vehicle deployment, citing safety concerns.
The department alleged that the car service company had misrepresented information regarding the safety of vehicles in light of a series of pedestrian-related incidents that occurred recently. It also comes after the National Highway Traffic Safety Administration launched an investigation into the incidents last week, which affects as many as 600 vehicles.
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“When there is an unreasonable risk to public safety, the DMV can immediately suspend or revoke permits,” the California DMV said in a statement. “Any act or omission of the manufacturer or one of its agents, employees, contractors, or designees which the department finds makes the conduct of autonomous vehicle testing on public roads by the manufacturer an unreasonable risk to the public.”
Cruise’s 24/7 robotaxi service was approved in a 3-1 vote by California’s Public Utilities Commission in August, but a day after the approval, as many as 10 of Cruise’s driverless vehicles caused a traffic jam in San Francisco. The car company was then ordered by the DMV to reduce its fleet by 50% until an investigation could be concluded.
Cruise said on Tuesday that it would be cooperating with the DMV's investigation into the incidents and will be pausing the operations of its driverless cars.
“We learned today at 10:30 am PT of the California DMV’s suspension of our driverless permits,” Cruise spokeswoman Hannah Lindow told CNBC. “As a result, we will be pausing operations of our driverless AVs in San Francisco.”
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The DMV said it gave Cruise some guidelines and requirements to reinstate the permits, but the permits would not be approved until the company "has fulfilled the requirements to the department’s satisfaction." It is not clear what those requirements entail.
The setback comes as Cruise has been expanding its portfolio nationwide over the past few months, including introducing cars in Miami, Nashville, and other cities.