Eversheds Sutherland Up to Speed Blog
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Tesla on Autopilot Crashes in Montana

A Tesla Model X traveling from Seattle to Yellowstone National Park on July 9th crashed on a two lane highway near Cardwell, Montana.  The motorist and his passenger acknowledged that the vehicle was on Autopilot mode at the time of the collision and that his hands were not on the wheel at the time of the accident.  In response to the accident, Tesla issued a statement stating that the motorist’s vehicle repeatedly alerted the driver to put his hands on the wheel, but he did not do so, and shortly thereafter the vehicle collided with a post on the edge of the roadway that police...
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Another Federal Agency Probing Tesla Crash

The National Transportation Safety Board (NTSB) has assigned a team of investigators to look into the May 7 fatal crash in Williston, Florida, involving a Tesla vehicle operating in Autopilot mode.  Notably, the NTSB normally investigates accidents involving trains, planes, buses, and ships.  The National Highway Traffic Safety Administration (NHTSA) and Florida Highway Patrol have already launched their own investigations into the accident.  Joshua Brown , 40, was killed when his 2015 Tesla Model S, while in Autopilot mode, struck a truck engaging in a left hand turn in front of the...
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Automated Vehicle Hacking Brings New Risks to the Road

Vehicle technology is advancing at a rapid pace, with fully automated driving the ultimate goal. The sensors, data connections and software that will ultimately revolutionize driving also create cyber-vulnerabilities that present unique safety and privacy concerns not previously experienced in the automotive industry. In this New York Law Journal article Sutherland attorneys provide an overview of automated technology, examine the cyber risks posed by automated vehicle technology and look at the likely effects of these issues on litigation from the perspective of manufacturers, insurers and...
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Morality and Autonomous Vehicles

The classic “trolley problem” in ethics is now becoming the “autonomous vehicle problem.” The thought experiment asks: A trolley is hurtling towards five helpless people on a track. Do you pull a lever to divert the trolley onto another track, hitting only one person—or do nothing? The updated question asks whether a driverless car should be programmed to hit three pedestrians in a crosswalk—or swerve into a wall and hurt its passenger instead. According to a recent series of surveys, people have mixed views on the question. 76% of respondents believed it was more moral for a driverless...
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Insurance Coverage for Driverless Cars

Who is liable for accidents involving autonomous vehicles?  At least one insurance company in Britain is now offering an auto policy that will cover autonomous and partly automated vehicles.  The policy covers accidents caused by malfunctions in the car’s driverless systems, as well as cyberattacks on the operating system.  According to news articles, the policy covers accidents in which the driver failed to use the manual override to prevent the accident and cars that have not been updated to the latest software.  The policy is not available in the United States, but insurers and others...
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Insurers Aim to Use New Technology To Make Cars “Marketing Machines”

Modern cars capture vast amounts of information about drivers through various computer technologies, tracking where drivers are going, when, and how they are driving. A new study from McKinsey and Company suggests that the future of car insurance lies in harnessing that data: by collecting and analyzing data collected from drivers, car insurers could turn the car into a “marketing machine.” As insurers face a future with fewer accidents, whether through crash-avoidance systems or autonomous vehicles, the McKinsey study states that insurers may seek to sell customer driving data as an...
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Michigan Governor Vetoes Bill Limiting Access to Aftermarket Parts

Michigan Governor Rick Snyder vetoed a bill that would have required auto repair shops to use only new or re-certified parts from original manufacturers, limiting the use of aftermarket repair parts. The bill would have applied during the first five years of warranty. According to Governor Snyder, the bill would have increased costs to consumers through higher costs for replacements and increased insurance costs. In addition, the Governor indicated that the bill would have hurt the aftermarket industry.
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Automated Driving Technology to Have Significant Impact on Trucking Industry

Automated driving technology is anticipated to have a widespread impact on the trucking industry, including decreased shipping costs and greater efficiency.  As high as seventy-five percent of truck based shipping costs are labor related; by removing the human component from trucking, labor costs are expected to drop significantly.  In addition, human drivers are restricted in the number of hours they can be on the road; autonomous driving will dramatically increase the time that vehicles can operate.  Recently, a convoy of self-driving trucks successfully drove across Europe to the Port of...
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Deloitte Predicts Changes to Auto Insurance Due to “the Future of Mobility”

Deloitte has released a white paper analyzing trends and potential future changes in auto insurance. Two key trends addressed are the rise of autonomous vehicles and the shift from individual vehicle ownership toward the sharing economy. Members of Deloitte’s actuarial practice modeled how these trends might affect auto insurance. Deloitte projects that total auto insurance premiums could decline by up to 30% from current levels due to the reduction in frequency of loss events (due to the rise of autonomous vehicles) and the decline in the total number of vehicles (due to vehicle sharing)....
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NHTSA to Consider Rear-Seat Safety

The National Highway Traffic Safety Administration will soon begin to test safety for passengers in rear seats as well as in front seats. The increased use of car-sharing services has led to more people riding in rear seats, many times without using seat belts. In addition, consumer advocates contend that although safety has improved for drivers and front-seat passengers, these safety enhancements may not have been made to rear seats in a car. Consumer advocates also claim that in some cases, front-seat design changes may injure rear-seat passengers. NHTSA will place crash-test dummies in...
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Michigan to Allow Self-Driving Vehicles?

This summer, the Michigan legislature is expected to consider various bills that could allow the sale and operation of autonomous vehicles in that state.  One bill would allow self-driving cars to be operated on public roads without a driver behind the wheel.  This could allow auto manufacturers to run networks of on-demand self-driving vehicles.  Another bill would help convert a former GM plant into a facility to test autonomous vehicles and wirelessly connected cars at highway speeds.  The bills have the support of the Michigan DOT as well as economic development officials.
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Owner Claims Tesla Crashed While Autopilot System Engaged

A California driver recently claimed that her car’s self-driving functions caused her to crash into another car on the freeway.  According to the owner, her Tesla S Autopilot cruise control system was engaged, but the car failed to slow down when the car in front of her suddenly stopped.  The owner says she manually braked but still hit the car in front of her.  Tesla contends that the owner was at fault, as she had deactivated the Autopilot system and the automatic emergency braking at some point before the crash by manually applying the brakes.  Tesla noted that the Autopilot system “does...
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Major Companies Invest In Ride-Hailing Companies

Two major car manufacturers have recently invested in ride-hailing companies, signaling their interest in and commitment to the mobility services market. Volkswagen AG is investing $300 million into Gett Inc., and Toyota Motor Corp. is investing in Uber Technologies Inc. Toyota’s partnership with Uber contemplates a new leasing model (allowing customers to cover lease payments for Toyota vehicles with Uber earnings), the development of in-car apps, and plans to establish a program to sell Toyota vehicles to Uber drivers. Through these investments, coming months after General Motors Co....
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Customer Advocacy Groups Accuse the NHTSA of Doing Too Little On Automatic Braking

The National Highway Traffic Safety Administration has been accused by consumer advocacy groups of doing too little to ensure that automatic emergency braking is standard in all light vehicles. The consumer advocacy groups have further accused the NHTSA of entering into a “backroom deal” with automakers to avoid such safety standards. Specifically, the NHTSA entered into an agreement in March with 20 automakers to make automatic braking a standard by no later than 2022—which the NHTSA argued would bring automatic braking to the public three years faster than the regular rulemaking process....
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