California DMV Suspends Cruise Permits

The California Department of Motor Vehicles has issued an immediate suspension of Cruise’s driverless taxi deployment and driverless testing permits.

It based the suspensions on the following:

• That based on vehicle performance, the manufacturer's vehicles are not safe for public use.
• That the manufacturer misrepresented safety information regarding its autonomous technology.

The department’s statement on the suspension noted, “Public safety remains the California DMV’s top priority, and the department’s autonomous vehicle regulations provide a framework to facilitate the safe testing and deployment of this technology on California public roads.

“When there is an unreasonable risk to public safety, the DMV can immediately suspend or revoke permits. There is no set time for a suspension.”

The DMV provided Cruise with the steps needed to apply to reinstate its permits, which it said it won't approve until the company has fulfilled requirements to the department’s satisfaction. The decision doesn't impact the company’s permit for testing with a human driver.

Cruise’s driverless taxis have come under scrutiny over reports of injured pedestrians involving the vehicles. The suspension of the license follows a National Highway Traffic Safety Administration probe into potential safety issues.

Meanwhile, GM recently announced a memorandum of understanding between Cruise and Honda to establish a new joint venture company to launch a driverless ride-hail service in Japan in early 2026.

A GM press release noted that the ride-hail service "is expected to be the first of its kind" and that Japan "has the potential to be one of the largest driverless ride-hail markets in the world as large cities experience high demand for taxis.”

To address the country’s transport needs, the JV will leverage the Origin, a people-centric vehicle co-developed by GM, Cruise and Honda for autonomous transportation, according to the release. The vehicle allows for six passengers to sit face-to-face.

Originally posted on Auto Dealer Today