GM’s Cruise CEO Resigns Following Pedestrian Dragging Incident

Cruise Ceo Vogt
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It’s been a bad few months for GM’s driverless car startup Cruise, including an incident where one of its robotaxis dragged an injured woman underneath itself for 20 feet and the subsequent suspension of its service by the State of California. And now its founder and CEO, Kyle Vogt, has resigned. What’s going on here?

It’s Thanksgiving Week here in America and we’ll be celebrating the way we always celebrate: Eating too much and working too much. Speaking of working too much, Tesla’s lawyers get a lot of work but they seem to earn their money, as they did in a recent lawsuit over repairs.

This year I’m grateful for data, and there’s some new CPO data that’s a little surprising. Plus, the Vegas F1 race seemed to go pretty well.

Cruise CEO Resigns!

In what’s definitely the biggest CEO resignation of the weekend (just kidding, I got 9,000 emails from The Information over the OpenAI drama), Kyle Vogt has resigned. Here’s what he had to say:

That whole thread includes none of the drama of what’s actually happened and basically says to his employees ‘You’re great, you’ll be great, see ya!’

Reminder, here’s some of what happened, as detailed previously:

Vogt leaving is a big deal because the coder/engineer/executive formed the company after helping Twitch grow into a huge company that Amazon acquired for nearly a billion dollars. While his public-facing statement is pretty positive, Reuters got the internal email, which says a little more:

“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,” he wrote in the email, reported exclusively by Reuters.

I think all of those things are true. Also, to be fair, it’s extraordinarily difficult to make this work. I think Cruise’s technology is likely among the best out there, but I also think the automotive industry has tried to sell the idea that all of us should be beta testers for their technology and I think that’s wrong.

The biggest challenge of driverless cars is that, for them to work, they need a ton of data. The only way to get good real-world data is to be in the real world. But to do that safely they probably need attentive drivers, which is a huge expense, and so these companies have convinced governments around the world to let them test.

Judge Rules Tesla Doesn’t Have A Service Monopoly

2024 Tesla Model 3 Rear

An antitrust lawsuit was filed against Tesla by consumers saying that, because of the company’s position, it was able to force customers to wait for long periods for repairs and pay high prices. Anecdotally, I’ve heard similar complaints from other Tesla owners.

The lawsuit, however, didn’t make it very far.

Per Reuters:

In a Friday night decision, U.S. District Judge Trina Thompson in San Francisco said customers in the proposed class action failed to show either that the alleged problems were “not generally known” when they bought their vehicles, or that they could not predict the costs to keep their vehicles running.

[…]

“To be sure, plaintiffs allege that defendant misled them about…how much maintenance its EVs are designed to need and how long that maintenance ought to take,” Thompson wrote. “But nowhere do plaintiffs allege that consumers are in fact unaware of the supposedly supracompetitive prices and exorbitant wait times.”

I think Tesla’s whole ‘Look at how cheap EVs are relative to regular gas-powered cars’ angle is a bit overblown, but I also agree with the judge that anyone who buys a Tesla should know by now that service isn’t going to be straightforward.

Certified Pre-Owned Sales Down 10.1% In October

Cpo Data

Here’s a surprising bit of data from Cox Automotive:

In October, certified pre-owned (CPO) sales experienced a slight decline, falling by less than 400 units from October 2022 to reach 207,189, a year-over-year decrease of 0.2%. However, this decrease is more pronounced compared to September, as month-over-month CPO sales were down by over 23,000 units, or 10.1%. One less selling day contributed to both year-over-year and month-over-month declines.

“CPO sales came in surprisingly weak in October, down 10% from September,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “Consumers may have chosen new over nearly new in October. With growing inventory levels, we saw healthy new-vehicle sales in October.”

That sounds right to me, actually. I think that CPO will certainly grow over the next few years, but you can also get a new Stellantis product for the cost of a CPO from many other brands, so why get a used car?

Ok, The F1 Race Was Pretty Good

You know, for all the concerns over the F1 race, it actually ended up being a pretty good race. Yeah, Max won again, but getting to that result was not obvious and the track ended up being a lot more fun than most of the modern courses we’ve seen.

Here’s our pal Jenna Fryer from the AP with the vibes:

Fans were forced to leave at 1:30 a.m. Friday morning after witnessing just nine minutes of track activity. The second practice started at 2:30 a.m. and ran until 4 a.m., and instead of an apology, F1 simply offered $200 credits to the LVGP merchandise store to any ticket holders who had only purchased Thursday access. A class-action lawsuit was filed Friday against the Las Vegas Grand Prix.

It made it critical for F1 to deliver a good race Saturday night and, even though it was Verstappen’s sixth consecutive victory, it was one of the most spirited events of the season. Additionally, a track that had been likened to a “flying pig” because of its layout was praised for its raciness.

Pretty good.

The Big Question

How did you think the F1 Las Vegas race went? If you didn’t watch it, why not?

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61 thoughts on “GM’s Cruise CEO Resigns Following Pedestrian Dragging Incident”

  1. I don’t watch F1 for the same reason I don’t watch horse racing. I prefer sports where the majority of the effort is borne by the human.

    Maybe that makes me a snob or an idiot idk.

  2. I see tesla are still pigheadedly refusing to set up shop in states where dealers are mandated.That’s got to make servicing even worse for many.
    I get that tesla dont like the rules,and i partly agree, but why oh why do they HAVE to win this??!
    Fucking retards

    1. I’m too American for F1. All the wealth flexing sponsors, the goofy euro clothes and haircuts, not for me. It’s a sport for the guy everyone knows who is way too into watches.

  4. Not surprised CPO sales are down. . .they are typically cars that are just a few years old and low millage. With new car sales (or lack there of) the last few years due to remote work, the pandemic, supply chain issues, and people just hanging on to cars a bit longer. . .I would think the the available inventory of CPO cars is lower than what dealers would like.

    Extrapolating that out a bit, low supply in theory would increase pricing, making them more on par with new cars. And at the same price, for me new wins over CPO.

    That said, I am still hanging to current vehicle even as it is getting beyond the age/millage I would normally upgrade cause I am cheap and everything available is too expensive.

  7. I didn’t watch the F1 race because it doesn’t interest me. F1 has no relevancy to any car I’d want to buy.

    I find the 24 Hours of Lemons more interesting.

  8. The LVGP is the first live racing event I’ve watched in years and I thought it was thoroughly entertaining. Hell, it was probably the first live sporting event that I watched from start to finish in years.

    I totally admit I’m one of the people who wasn’t into F1 much until the Netflix documentary, and I mainly watched the LVGP because I’ve spent a bunch of time in Vegas over the years, including 2 weekends ago, so it was fun to see the cars race around a familiar venue. It was mind bending to see how long it took the cars to get from the Palazzo to Paris, knowing how long it takes to walk it on foot!

    So in that context, F1 totally did what they accomplished and got a new viewer. Dunno if I’d stay up late to watch other races in the future, but I’d at least consider it whereas in the past I didn’t care that much.

  9. CPO sales are likely dipping because interest rates on used cars (certified or not) are utterly absurd right now and the “best” (i.e. less bad) rates are available on new cars. If a new car you’re looking at can be financed at less than 5% and going CPO will cost $5,000 less than new but be financed at 11% interest the savings are negligible at that point. CPOs also cost more than just going straight up used…in some cases quite a bit (i.e. 10%+).

    I actually like CPO vehicles. It’s an additional layer of peace of mind and in some cases the extended warranty coverage is impressive (i.e. Porsche). Sometimes I see CPO cars listed that still have regular warranty balance left on top of the CPO extended warranties and go “hmmmm that’s a hell of a buy” until you crunch the numbers.

    Interest rates are too damn high. Buying or leasing new is a better proposition for a lot of buyers right now. If manufacturers offered comparable-to-new interest rates on CPO like they did in the before times people would want them more…but with the soul crushing interest rates right now they aren’t a great buy unless you can afford to pay cash….which most people can’t.

    2. Most manufacturers do have special rates in their CPO program, if a bit more common on the premium brands. Acura has 3.9%, MB 3.39% in my area right now for example which are similar or better than new…but just 36 months, the new rates go longer. So the promo is out there, but I think it’s that most late-model used cars are still going for more money than a comparable new car and brands are fighting for the new car sale more as we’re seeing inventory and incentives start to climb. Depending on the brand, the main reason to pay for a late model used over waiting for a new one was availability, it’s there now, not in a couple months time.

    3. “with the soul crushing interest rates right now they aren’t a great buy unless you can afford to pay cash….which most people can’t.”

      I’ll argue no car over $6k is a “great buy” which should be within reach of many of those cash strapped folks.

      $6k will buy a whole lot of turn the key and it starts every time Accord/Camry/Buick though.

  10. I thought the race was awesome. Exciting on track action from start to finish and it looked freakin’ fantastic on TV. Suck it rest of the world, WE produce the biggest spectacles! USA! USA!

    Not surprised by the CPO numbers at all. As someone who is (kind of) car shopping, I’m constantly saying to myself “I can get a new one for like $1000 more, why go used?” In summary, new and used are both extremely expensive! Yay!

  12. I watched the race (the next morning, no way I was staying up to watch it live) and thought it went pretty well. The unpredictability from the cold tires was great, and as much as I thought this was a stupid idea the background of racing on the strip did make for some good visuals.

    The biggest problem is that the season was decided weeks ago. Even in that brief stint where Leclerc looked destined to win it was hard to care. If this race was earlier in the season it would have been a totally different feel.

    I am worried that next year it’ll be boring, as the teams will have experience they can lean on for setup and some of the growing pains on the track will be ironed out.

  13. I worked at Belaggio last Tuesday, putting up a cable bridge over an ancillary roadway. Then I disassembled it, because it was too low to get a truck under, which wasn’t in the spec. Then I waited 4 hours (on the clock, of course) for an engineer to tell us how to build it taller but still safe. The engineer never called back, so I went home without the cable bridge having been installed.

    As of last Tuesday, the rumor mill was that the labor costs were *already* $500,000 over budget because of stuff like that. My point being is that it is not yet possible to say if the race was a success, because here in Vegas, the word “success” is defined as “did the casino owners make more profit than they would have on an ordinary weekend?” And we won’t have that answer until all the bills have been paid.

    1. Success won’t be determined until after next year, because it’s not just about the race weekend, its about the weeks before and the week after. This year people that went to Vegas 1-4 weeks prior to the race didn’t know what a disaster the city would be, and having the front block of the Bellagio fountain inaccessible is huge, gotta be close to the top spot, everyone wants a pic in front of it. When word spreads about what its like the month before a lot of people won’t go, I believe if next years weeks preceding the race are bad for biz, that’s what will kill the race. I would think race weekend next year will be better. I was there 2 weeks before the race and will not even think about going once race prep begins a month before.

      1. Allow me to say that Las Vegas is not as reliant on leisure tourism as you’ve been led to believe. The real money comes from the convention and trade show industry. If you tell a tourist that a hotel room is $500/night, they might choose another destination or time. But convention attendees will pay $500/night (think CES) because it’s a writeoff anyhow.

        NOW, if the people and industries that host trade shows and conventions annually in October and November decide to move their events to another city, THAT’S where it’s gonna hurt the city.

        1. Yeah and SEMA was there 2 weeks before, if they don’t want to be there weeks before next years race and neither do other shows that will send a signal.

  15. Las Vegas was an F1 8/10, every other Motorsport 4/10. F1 is cool and all, it’s just so top heavy that it’s just the same race in different exotic locations. Also zero inclusion of The Bellagio fountain, a bit disappointed about that.

  16. The Las Vegas race was…good? Pretty good. I don’t like that it wasn’t scheduled for Americans despite being in America and probably wouldn’t go in person if the high prices/no support races deal continues, but hot damn, Spider Pig delivered on race day.

    I’m always hoping F1 pulls it off and does well because goshdarnit, it’s a fun time. This is why I complain about it a lot.

    I also think the automotive industry has tried to sell the idea that all of us should be beta testers for their technology and I think that’s wrong.

    Ding ding ding. Either pay me (hazard pay, so $$$$$) to be a guinea pig or don’t use me as one. I didn’t sign up for this.

  17. I don’t think it’s much surprise that Vogt resigned or that he would put a rosy spin on it. He doesn’t want to burn any bridges or take any real responsibility. He’ll have a new high-paying C-suite gig before the investigation can even point toward anyone. And the next CEO will be more than happy to take credit for moving the company in a new, safer direction (the same direction as before, actually, except any changes the government requires).

    The Tesla lawsuit sounds unfocused. Going after Tesla for misleading on maintenance costs is a bit different from going after them for a monopoly on repairs, and putting the two together may have hurt things by conflating the two issues. I don’t know how their repairs or availability of parts compare to industry standards or anything, so I don’t know about the merits of the case. I think it would be hard to make a solid case, given that most manufacturers likely push for repairs through their dealers and such. Long waits can happen. Just because they are common with Tesla does not necessarily justify a lawsuit.

    CPO sales being down might mean nothing or it might be a lot of things. I wonder if the supply may have been low and/or the prices remain inflated. In my area, it looks like both are true, but that’s just anecdotal.

    F1…I just can’t get excited about it. Between the cost, the frustrations it caused, and how out-of-touch it seems, I couldn’t see myself watching the race, or even a highlight reel.

  18. I’m still of the opinion that 4 Wheeled motorsport is dead. Seriously think of the last time some ground braking tech came out of 4 wheeled motorsport? It has been a while.

    It seems like a massive money pit, Ford would be a lot better off if they shitcanned all of their motorsports stuff and focused on the basics like making reliable automobiles, getting their dealers to stop the massive markups, stop dealer order theft, etc.

    1. Maybe for road racing but off road motorsports is really pushing the boundaries. New innovations in shock technology, consumer portal axles, biiiiiig (42″) DOT tires. It’s a niche on a niche but much more exciting (imo) than road racing.

        1. I would say yes. Live valve on Ford F150 and Bronco Raptors as well as the Bilstein shocks on the TRX would not be possible without miles of race testing. 37 inch tires are now available stock on some vehicles as well as 40 inch tires, if you consider an AEV prospector a production automobile (it is not limited in numbers and can be ordered directly from a dealer).

          1. How is any of that ground breaking? Cool sure, but not ground breaking.

            (I just realized I wrote “ground braking” instead of ‘ground breaking’ in my original comment -_-)

            1. You know, that is a good point. Electronically adjustable shocks are not new in themselves. I think the capability of an off-the-lot production 4×4 is ground breaking. You can have a different opinion.

              1. I kind of agree. My issue is that said “ground breaking” bits are exclusive to very expensive automobiles that are only available with automatic transmissions. Both are not my thing. The street legal 4x4s sold in the US are all pretty large and very heavy when compared to older 4x4s.

                Legitimately for a daily driver 4×4 I don’t need anything that weighs more than 3000lbs and the smaller the better.

                And for technical off-roading older street legal 4x4s have a significant advantage over new street legal 4x4s.

                Generally speaking the best on road automobile is the worst off road automobile and today’s 4x4s are more on road than off road focused by a massive amount.

                For me the only “new” stuff that gets me excited are off road BEVs, aluminum chassis/bodies, and airless tires, for everything else I want old tech like manual steering, manual windows, mechanical door/hood/trunk/frunk latches, buttons, etc.

                *edit: Also older 4x4s were definitely more utility and farm vehicle focused like the old Jeep CJ-5s.

  19. For all the press it got, I did not know it was Saturday night. Well done, F1, well done. I actually wanted to watch this, but just assumed it was Sunday. #shrugs-cause-dont-care

    1. Indeed, and while I get the desire to make it a more pleasant time for their core audience overseas, not to mention make it look more snazzy in the background with the Vegas lights, it doesn’t do much for the US audience that the race was hoping to build. Oh well, F1 is nothing if not consistent in making it hard for the average American to care about it.

    2. Well they were too busy compiling the 75 page celebrity list distributed to the media. I really dislike all the celebrity attention at sporting events, who really cares what celebs are there.

  20. Don’t watch F1, or much racing, as I’m not sure the relevance, used to be at least some trickle down tech came out of racing, VTEC, better aero, cool side graphics. Now just seems like they’re going the gimmick route with “Vegas baby!” or the rovals in Nascar, not that Nascar has moved the bar on car tech in the last 40 years anyways.

    Cruise should definitely have drivers in their cars, even that’s not foolproof, but until the car is basically sentient, there’s no way to account for all scenarios, and as shown even their default “pull over” mode can be bad. Of course once they are sentient that’s a whole other issue. “Take me to Taco Bell”, “I’m sorry Dave, the seat weight sensor indicates you do not need taco bell, re-routing to Bean Vegan”, driver initiates tuck & roll.

    EVs in general do have much less maintenance, I’ve had to buy tires, cabin air filters, wiper blades for mine, that’s about it. The EV components are still under warranty of like 10 years. I guess the Tesla warranty isn’t that good? But with cars it’s always caveat emptor, even if they have a fancy showroom and online ordering process.

  21. What does “take responsibility” mean in the former CEO’s statement? I hear it a lot after sporting events where coaches or individual players say they “take full responsibility” for a loss… which doesn’t mean much because, well, it’s just a game. But here? I feel like “taking responsibility” would mean facing criminal negligence charges, but I don’t know if that’s the case.

      1. “I’d like to take responsibility for the problems this company has had with me at the helm…by doing nothing except leaving and hoping to find a better company to head. Best of luck, all!”

  22. I propose for Autopian’s style book that ‘X formerly known as twitter’ be called Xtwitter. It just works: if you say it, it says just what the whole phrase says: ‘ex twitter’. Of course, we can pronounce however we want. Reddit is starting to go with Xitter, pronounced with X as ‘sh’, but I like it as ‘exit-er’

    Just a suggestion

    • F1 owes those fans a full refund for FP1/2, but the Vegas race was good. Between the cold tires, multiple long straights, and the restarts, it kept things interesting.
    • I get the idea of resigning is seen by some as the way to “take responsibility”, but it really just generates more negative PR. They’ve pushed an update that will make the cars stop instantly, instead of getting out of the way of traffic. I don’t think that’s wise, but it seems to be what everyone was wanting. The only thing left is the not be dickwads when there’s an investigation. Him resigning doesn’t fix that.

    2. They’ve pushed an update that will make the cars stop instantly, instead of getting out of the way of traffic.

      The best move would’ve been to include well-trained drivers to take over driving as needed, but that costs money and undermines the (inaccurate) image of Cruise taxis being truly autonomous. So the best move they could stomach was an update.

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