The California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) have suspended General Motors' (GM's) autonomous car subsidiary, Cruise's driverless robotaxi deployment permits (including the commercial permit) effective immediately, citing safety concerns and misrepresentations about its vehicles.

The suspension prevents Cruise from offering driverless rides to the public in San Francisco, impacting its expansion plans. The DMV has specified a set of requirements that need to be met before applying to reinstate the permits. 

The move to suspend was primarily due to an incident earlier this month , in which a pedestrian—initially struck by a human-driven vehicle—was trapped underneath a Cruise robotaxi. The National Highway Traffic Safety Administration (NHTSA) also opened a separate investigation into this. 

The company is still allowed to test vehicles with a safety driver on board to take control if needed.

Analyst QuickTake: The suspension is a significant setback for Cruise, which had been testing autonomous cars in San Francisco for several years and obtaining commercial driverless robotaxi deployment permits in August 2023. The move raises concerns about the safety of driverless car technology, with calls for federal regulators to scrutinize it more closely.