US-based robotaxi company Cruise is set for a major organization shake-up as its founders resigned from their positions, including Chief Executive Kyle Vogt and Chief Product Officer Dan Kan.
Cruise’s co-founders’ decision occurred after their robotaxi got involved in a “hit-and-run” accident in San Fransisco, leaving the victim in critical condition.
Chief Vogt’s departure
Former Cruise CEO Kyle Vogt announced his resignation late Sunday night through an X post. He took the chance to thank everyone who supported Cruise from the beginning of the development to General Motors’ official takeover.
Although he decided to leave his position in the company, he assured the people that the current management still had a very solid roadmap for the business.
Unfortunately, the former Cruise CEO omitted to share more details about his future career plans. Mr. Vogt teased the people with his intentions to “explore some new ideas.” According to Tesla North, the Chief Executive position is still open as of Sunday.
CTO Kan followed suit
Reuters reported that co-founder and CPO Dan Kan also decided to leave the robotaxi company on Monday morning, just less than a day after the CEO Kyle Vogt resigned from his position.
GM Chairwoman and CEO Mary Barra announced in a separate internal email that Cruise’s Engineering Executive Vice President Mo Elshenawy will now advance as the President and CTO. Meanwhile, Cruise board member and GM’s legal and policy EVP Craig Glidden will maintain his position as Chief Administrative Officer.
GM’s board Jon McNeill has been promoted as Cruise’s Vice Chairman of the board, TechCrunch reported, citing the GM Chairwoman’s email it obtained.
Major setbacks
The major reorganization reportedly occurred just less than a month following the suspension of Cruise’s permits to launch robotaxi operations on public roads.
The California Department of Motor Vehicles suspended the permits due to the accident reported on October 2 that involved one of the company’s self-driving taxis.
According to Forbes, a woman was initially hit by a human driver while she was crossing a street in San Francisco. Unfortunately, she landed in the path of an arriving Cruise robotaxi, which dragged her about 20 feet away.
Former Chief Vogt claims to take responsibility in an email he sent to Cruise employees last week.
“I am sorry we have veered off course under my leadership and that this has affected many Cruisers in a deeply personal way. As CEO, I take responsibility for the situation Cruise is in today. There are no excuses, and there is no sugar coating what has happened. We need to double down on safety, transparency, and community engagement.”
Former Cruise CEO Kyle Vogt via Reuters
The resignation of Cruise’s founders is undoubtedly a major setback in the emerging autonomous vehicle industry. It also advances Alphabet’s Waymo position to dominate the AV market, especially in the US. Waymo is now officially the only company to launch paid autonomous ride-hailing services in the country.
