GM’s Driverless Plans Shattered

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By Douglas A. McIntyre Published
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GM’s Driverless Plans Shattered

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GM won’t continue its tests of driverless vehicles in the U.S. for now. Its permit to test them in California was taken away. State regulators don’t think GM “autonomous vehicles” are safe. The primary barrier to AV adoption is fear of crashes. So. far, that anxiety has been well placed. As part of its surrender, a GM’s spokesperson said, “The most important thing for us right now is to take steps to rebuild public trust.”
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Autonomous driving vehicles are not as large a short-term opportunity as EVs are. However, the idea that people can give up all the functions of driving and use their cars as small living rooms has almost unlimited appeal.

At least two dozen autonomous car companies are operating in the U.S. when the large car companies are included. The most famous company outside the auto industry is Waymo, which spun out from Google. Uber has started to use Waymo-built cars in Phoenix. But a Phoenix distribution is much less difficult than a national one.

To the uninitiated, the problem with marketable driverless cars is that they must be mapped to every road and street in America. They have to detect traffic signals and signs. They must account for people who dart across the road, unexpected and unseen at first. They have to function the same way with animals and other cars. (These are the worst multi-vehicle car accidents in America.)
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Tesla has had problems with its self-driving feature, even if it is supposed to be coupled with driver supervision. Bad news, like crashes, makes adoption harder.

There is no evidence that self-driving cars can be used to travel anywhere in America. That time is years away. Regulation by state and even city will slow adoption as well.

GM has delayed its move into autonomous vehicles. Technology failed it. Later on, regulation may be the barrier.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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