[Photo Credit: By Kevin P. Siu - Photo taken from a flight on a Cessna just over San Francisco Bay, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=45030502]

GM Hits Liberal City of San Francisco With Massive $121 Million Lawsuit

General Motors (GM) has initiated legal proceedings against the city of San Francisco in an effort to retrieve $108 million in taxes and $13 million in interest that the corporation claims were unjustly levied from 2016 onwards.

The lawsuit, which was filed on Friday in the California Superior Court and the County of San Francisco, alleges that the municipality imposed unjustifiedly high taxes on the company due to its consideration of its Cruise self-driving car division, which the company associates with a $3 billion global revenue despite the fact that it is operated independently from GM.

In addition to interest, penalties, and interest totaling nearly $13 million, the Detroit-based automaker is demanding payment of these amounts for tax issues that occurred between 2016 and 2022.

According to the lawsuit, the organization sold an estimated $677,000 worth of products in San Francisco in 2022, and its presence in the city is limited to the absence of manufacturing facilities, employees, physical locations, and dealerships.

The reason the company waited until now to contest the city’s tax assessment, despite having previously paid, was not disclosed.

As a result of a sequence of collisions, the self-driving fleet was removed from public roads in November, prompting Cruise to recall its CEO and update its software.

After an accident on October 2 in which a Cruise vehicle drew a pedestrian to the side of the road after the individual was struck by another vehicle and propelled into the path of the autonomous vehicle, safety concerns were raised.

Cruise’s autonomous permits were revoked by California on the grounds that they are unsafe for public operation.

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