GM (NYSE:GM), the automobile major, has dismissed nine key people from its robotaxi unit, Cruise, amid an ongoing safety investigation, according to an internal memo accessed by Reuters. This was later confirmed by the company.
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GM’s Cruise unit has been in turmoil after a woman was hit by a Cruise vehicle in San Francisco on October 2. The accident prompted safety reviews and the resignation of CEO Kyle Vogt and Co-Founder Dan Kan.
The company’s memo stated, “We are committed to full transparency and are focused on rebuilding trust and operating with the highest standards when it comes to safety, integrity, and accountability. As a result, we believe that new leadership is necessary to achieve these goals.”
GM’s spokesperson confirmed that among the nine individuals dismissed, it include Chief Legal and Policy Officer Jeff Bleich and Senior VP David Estrada. Earlier this year, the company lost its robotaxi rights in California while the National Highway Traffic Safety Administration (NHTSA) also opened an investigation.
As a result, GM faces potential fines of $1.5 million, and Cruise’s new president, Mo Elshenawy, acknowledged that the autonomous unit had hit an “all-time low” at a recent meeting.
Is GM a Good Stock to Buy?
Analysts remain cautiously optimistic about GM stock with a Moderate Buy consensus rating based on 14 Buys, four Holds, and one Sell. In the past year, GM stock has declined by more than 10%, and the average GM price target of $45.91 implies an upside potential of 35.1% at current levels.
