Leading car maker sinks US$1bn into autonomous cars

As another state prepares to allow self-driving cars on its roads, auto makers remain shy about liability, leaving plenty of opportunity for brokers

Insurance News

By James Middleton

The Massachusetts Executive Office of Housing and Economic Development is understood to be in the early stage of forming legislation that would allow companies like Google, Tesla and Toyota to test and operate self-driving cars on roads around the state.
 
The agency cannot make any comment on the nascent plans, but the revelation comes just days after Toyota Motor Corporation said it would invest US$1 billion in robotics and artificial intelligence over the next five years.
 
The Japanese manufacturer will establish a new operation, Toyota Research Institute (TRI), which will be located in Silicon Valley, with a second facility, which coincidentally will be located near the Massachusetts Institute of Technology (MIT).
 
The new company will begin operations in January 2016 and will be directed by Dr Gill Pratt, Toyota’s executive technical advisor.
 
Pratt said: “Our initial goals are to: 1) improve safety by continuously decreasing the likelihood that a car will be involved in an accident; 2) make driving accessible to everyone, regardless of ability; and 3) apply Toyota technology used for outdoor mobility to indoor environments, particularly for the support of seniors.”
 
But when questioned on the issue of insurance liability, Toyota said it did not have any comment.
 
This is in stark contrast to Swedish competitor Volvo. Last month, Håkan Samuelsson, president and chief executive of Volvo Cars, caused a significant stir when he said Volvo “will accept full liability” whenever one of its cars is in autonomous, or so called 'self-driving', mode. This makes Volvo the first car maker to publicly make such a promise on the question of liability.
 
Other car makers are less bold. Just days after electric car pioneer Tesla began rolling out an assisted driving updated to its vehicles, videos began appearing on YouTube showing Tesla owners engaging in downright dangerous activity. One such driver engaged the 'autopilot' on a Dutch highway at over 50Mph then climbed into the back seat.
 
The public reaction caused Tesla chief Elon Musk to order the deployment of emergency 'constraints,' essentially rolling back some features of the assisted driving technology.
 
Last week, Volvo unveiled its DriveMe project, which aims to make 100 autonomous cars available to consumers in Gothenburg, Sweden for use in everyday driving conditions by 2017.
 
“By 2020, no one should be killed or seriously injured in a new Volvo Car,” said Samuelsson. “As a result we are one of the first carmakers in the world to accept full liability when our cars are in autonomous mode. But it’s not only about liability — it’s also about your convenience, as autonomous driving can give back a little time for the driver to do other things, when safe to do so,” he said.
 

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