The Regulatory Challenges of Autonomous Driving

On Thursday, the California Department of Motor Vehicles (DMV) issued an autonomous vehicle department permit to Mercedes-Benz for its Drive Pilot system. The hands-off, eyes-off system can be used on designated California highways under certain conditions without the active oversight of a human driver. This is the fourth company to receive an autonomous vehicle deployment permit in California and the first authorized to sell or lease vehicles with an automated driving system to the public.

Mercedes an only use Drive Pilot at speeds up 40 miles per hour, during daylight hours, and on certain highways. The system can’t be used on city or county roads, in construction zones, during heavy rain or heavy fog, or during weather conditions that are determined to impact the performance of the system. The DMV has placed further conditions on the company, including that vehicle owners must watch a mandatory video explaining the capabilities of the system and how to engage and disengage the technology before they can access it. Mercedes must also meet several safety, insurance, and vehicle registration requirements. The permit is quite limiting. However, it at least allows for limited autonomous driving, unlike the situation with autonomous vehicles in the UK.

Despite the commitment of the UK government on being a global hub of research and development in autonomous vehicle technologies, driverless cars are not currently permitted on Britain’s roads, making it difficult for start-ups to commercialize their vehicles and insurers to assess their risks.  Last August the UK government said that it would advance a bill in the current parliamentary session, which is expected to end this autumn, providing detailed regulations by 2025. However, that has not happened yet. "There is a window of opportunity for the UK to at least be leading on something," said Claudio Gienal, head of UK and Ireland operations for global insurer AXA. “Whoever moves first will have the advantage of attracting investment, skills and expertise. But if you're second or third, why should people come here?"

The vision of the UK government is built on forecasts that by 2035 around 40% of new cars could have self-driving capabilities and leadership in AV technology could create up to 38,000 new skilled jobs in a market. However, it seems like there is no room in this parliamentary session for an AV law. Failure to enact regulations could give ground to other countries like France, Germany and the UAE, which are putting regulations in place.

Personal Comment:

The permit given by California is different than the permit given to Waymo and Cruise. This, in part, is because the ride-hailing companies are SAE 4, whereas Drive Pilot is SAE 3. Quite appropriately, then, the permit Mercedes got limits the system much more than the permit the others received. However, an interesting aspect about Mercedes is that unlike the more advanced AVs they are selling directly to customers. This is a significant step, and important if AVs are going to be widely adopted. It also seems like a good sign that the regulatory environment in CA can deal with both.

When it comes to the UK struggles, it is a bit strange that the country wants to be a global hub for AV research and development without a regulatory environment to make that possible. However, it seems like the UK has some progress in this. BlueCruise, which is in fact a Level 2 hands-free ADAS, can now be used on approved UK highways. It is not a fully self-driving system, of course, but is it a probably a good start anyway.                                                                                                                                        

The Written by Kateryna Melnyk,
RISE Mobility & System