GM’s CEO’s cruise investment became a liability

But a serious safety incident last year put everything at risk. In October 2023, a self-driving robotaxi struck a woman in San Francisco, ran her over and dragged her 20 feet. The car falsely described the incident as a “side collision” and attempted to stop, not realizing that a person had been dragged along in the process.

The nonfatal incident sparked a wave of reevaluation and restructuring at GM and Cruise, my colleague Jessica Mathews reports in a new report Assets Investigation. For GM, the incident turned one of Barra’s most promising investments (GM owns 80% of Cruise) from a “crown jewel” to a “liability,” Jessica writes.

The upheaval came as Barra simultaneously led last year’s UAW strike against the Big Three automakers. GM replaced most of Cruise’s management team and ultimately agreed to pay between $8 million and $12 million in compensation to the woman who was hit. And as Jessica writes, the incident demonstrated the power of a Fortune 500 giant like GM to save an emerging self-driving car company compared to a typical startup trying to save itself after a disaster. When an analyst said the incident was “uncharacteristic of GM,” Barra told him, “I agree with you.”

Read Jessica’s full investigation here.

Emma Hinchliffe
[email protected]

The broadsheet is Assets’s newsletter for and about the most powerful women in the world. Today’s edition was curated by Joseph Abrams. Subscribe here.

ALSO IN THE HEADLINES

– Five and more. Five states will now place abortion rights on their November ballots. South Dakota and Colorado are the latest to approve ballot measures asking voters whether they should enshrine abortion rights in their state constitutions. NBC News

– Read with Reese. How did Reese Witherspoon’s book club take over the literary world? In 2023, print sales of Reese’s Book Club selections totaled 2.3 million, surpassing those of Oprah’s Book Club and Jenna Bush Hager’s Read With Jenna. New York Times

– Chair in the hot seat. Tesla boss Robyn Denholm says her job doesn’t include babysitting CEO Elon Musk and pushed back against accusations that the exorbitant wealth she has amassed through Tesla is hampering her oversight of the company. She is working to win shareholder support for CEO Elon Musk’s $56 billion pay package and relaunch Tesla ahead of next month’s annual meeting in Texas. Financial Times

– Blame the woman. Supreme Court Justice Samuel Alito and Senator Bob Menendez (D-NJ) have both blamed their wives after getting into hot water; Alito over a “Stop the Steal” sign on his house and Menendez over bribery allegations. It’s an age-old political strategy that raises questions about sexism and stereotypes. New York Times

– Custody dispute. Japan’s parliament has passed an amendment allowing joint custody rather than sole custody of children following a divorce. But the change has been criticized by women’s rights activists who say it could endanger victims of domestic violence. Nikkei Asia

– #MeToo boom. A French short film highlighting the testimonies of thousands of sexual assault victims is reinvigorating the country’s MeToo movement after debuting at the Cannes Film Festival. Hi Aussior Me toowas produced by French actress Judith Godrèche, one of the first women to come forward with allegations against disgraced Hollywood producer Harvey Weinstein. Bloomberg

MOVERS AND SHAKERS: Dior CEO Delphine ArnaultA Favorite candidate As her father Bernard Arnault’s successor at LVMH, she takes on a broader role across LVMH’s fashion portfolio after the abrupt departure of the managing director Michael Burke.

ON MY RADAR

Cardi B’s TikTok Helps Shares of South Korean Spicy Instant Noodle Maker Jump 30% Assets

Why no woman is among the 50 highest paid athletes in the world Forbes

From denial to admission: How surveillance video held Sean “Diddy” Combs accountable CNN

SEPARATING WORDS

“I’ve had 35 really great, self-centered years and to be honest I could use a break.”

—Cookbook author Molly Baz on parenting