GM’s Cruise Fires Nine Executives Amid Ongoing Safety Probe; GM Promotes New Leaders

General Motors' Robotaxi division, Cruise, reportedly fired nine executives following the regulators' launch of a safety investigation. The probe comes after one of the company's autonomous taxis got involved in an incident while on the road.

In a note that CNBC obtained, it was learned that General Motors' Cruise unit revealed the dismissal of key leaders through an internal message to employees. The departures are part of the company's response to the accident that took place in October, where the Cruise's robotaxi dragged a pedestrian after the victim was hit by another vehicle.

The Dismissed Executives

Based on the available information, GM's Cruise terminated nine people, including some from its legal unit, commercial operations, safety and system teams, and those managing government affairs. The note informing the employees about the dismissals was sent out company-wide.

"The personnel decisions made today are a necessary step for Cruise to move forward as it focuses on accountability, trust and transparency," GM stated to confirm the terminations through an email statement to the publication. "GM remains committed to supporting Cruise in these efforts."

At any rate, it was revealed that Kyle Vogt, GM Cruise's co-founder and CEO, along with chief product officer Dan Kan, have also resigned from the company.

GM Promotes Executives for the Company's Next Phase of Growth Strategy

Meanwhile, after losing nine key executives in its Cruise unit, General Motors announced the appointment of new leaders. The company promoted Ken Morris and Josh Tavel to new leadership positions in its product development unit. They will be working under GM's president, Mark Reuss.

GM also assigned Rory Harvey to a new role that will manage the business in global regions. The firm said it also promoted Marissa West to the senior vice president and president role in GM North America. The company further announced that Doug Parks, who has been working as a Global Product Development leader, is set to retire after serving for almost 40 years.

"We have spent years preparing GM to transition to an all-electric future, and Doug's leadership has been pivotal. We are grateful for his many contributions to GM's success," General Motors' chairman and chief executive officer, Mary Barra, said in a press release. "The changes we are announcing today will continue to drive technical excellence and deliver groundbreaking vehicles to our customers around the world."

All the newly-assigned executives are expected to assume their new roles on Jan. 2, 2024.

Photo by: Cruise Website