San Francisco, November 20, 2023 — Kyle Vogt, co-founder and CEO of Cruise, the autonomous vehicle venture owned by General Motors (GM), has resigned from his position, the company announced in a statement to CNBC on Sunday. The departure follows a series of setbacks for Cruise, including a voluntary recall of 950 robotaxis and a suspension of vehicle operations on public roads.
Mo Elshenawy, former executive vice president of engineering at Cruise, has been appointed as the new president and Chief Technology Officer (CTO) for the company. Vogt, in a social media post on X (formerly Twitter), confirmed his resignation without providing a specific reason. He expressed his intention to spend time with his family and explore new ideas while expressing confidence in Cruise’s future.
Vogt’s resignation follows a challenging period for Cruise, marked by a series of incidents that led to a voluntary recall and the suspension of operations on public roads. One particularly serious incident involved a pedestrian being struck by another vehicle, subsequently hit by a Cruise self-driving car.
The California Department of Motor Vehicles (DMV) suspended Cruise’s deployment and testing permits, accusing the company of not providing a transparent account of the pedestrian collision. The National Highway Traffic Safety Administration is also investigating Cruise to assess the appropriateness of its automated driving systems around pedestrians.
General Motors acquired Cruise in 2016 and had high expectations for the autonomous vehicle startup. Recent financial reports indicate losses of approximately $1.9 billion on Cruise between January and September 2023, with $732 million in the third quarter alone.
Mary Barra, GM’s CEO and Chair, expressed hope that Cruise would play a significant role in doubling the company’s revenue by 2030. However, challenges in building a driverless transportation network have led to increased scrutiny and executive changes.
Former Tesla and Lyft executive Jon McNeill, a member of GM’s board of directors, has been appointed vice chairman of Cruise’s board following Vogt’s resignation. Transportation consultant Alex Roy emphasized the need for Cruise to rebuild trust with staff, regulators, and the public, stating, “Responsibility starts at the top. If Cruise is going to survive, the CEO had to go.”
Vogt’s resignation comes approximately two years after his reappointment as CEO, filling the void left by the unexpected departure of Dan Ammann in December 2021. Ammann, credited with Cruise’s 2016 acquisition, was succeeded by Vogt in 2021 after leading the company since 2019.
As Cruise faces challenges, the industry and investors will be closely watching for developments under the leadership of Mo Elshenawy and the newly appointed board members.
