Impact of Autonomous Vehicles on the Auto Industry

This research proposal analyzes the impact of autonomous vehicles on the auto industry, discussing the technological advances, industrial analysis, and potential organizational impact.

Running head: RESEARCH PROPOSAL
Technical Project Proposal – Management of Technological Innovation
Name of the Student
Name of the Course
Name of the University
Date
Author’s Note

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Table of Contents
1. Executive Summary...............................................................................................................2
2. Description of the technology and it's general potential........................................................3
3. Characteristics of the Technology..........................................................................................3
4. Industrial Analysis.................................................................................................................4
5. Technology Projection...........................................................................................................5
6. Discussion of Organization....................................................................................................6
7. Potential Organizational Impact.............................................................................................7
8. Organizational Projection.......................................................................................................8
9. Recommendations..................................................................................................................8
References................................................................................................................................10
Appendices...............................................................................................................................12

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1. Executive Summary
The paper mainly reflects on autonomous a vehicle that is mainly considered as driverless
vehicles that generally help in guiding itself without human conduction. The main aim of the
paper is to focus on the future of transportation and to analyse its impact of autonomous
vehicles on the auto industry. It is found that the autonomous vehicles utilize algorithms as
well as AI for determining the map as well as for identifying the routes by navigating the real
traffic without getting the intervention of the human driver. The industrial impact of
autonomous vehicles has been discussed in the paper. The technological advances in
autonomous vehicles have been reflected in the paper. The industrial usages of the
autonomous vehicles have been critically explained in the report. This paper describes why
autonomous vehicles will be accepted as a new technology in the automobile industry in the
future. There have been various factors discussed in the report regarding the acceptance rate
of the AV in the market. The technology used in Autonomous vehicles has been discussed in
the paper.

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2. Description of the technology and its general potential
According to Bonnefon, Shariff and Rahwan (2016), driverless cars are generally
predicted to create a significant impact on the global economies by creating new job options.
It is found that the experts who belong from the different motor industry generally help in
analysing how an increase within the autonomous vehicles creates an impact on the different
aspects of the industry. On the other hand, Vaudrin, Erdmann and Capus (2017) that
technological advancement within the global positioning, computing power, sensor system as
well as digital mapping has made autonomous vehicles a reality state it. It is found that the
self-driving car project has generally accelerated the development of the practical self-driving
cars which are considered to be safe as well as efficient. It is opined by Shah et al. (2018) that
the automobile industry is slowly reacting towards the technological change and therefore the
focus on the autonomous vehicles will be helpful in providing safe as well as a useful product
to the customers for reducing road accidents.
There have been installations of GPS systems along with Google maps that help in
reading and analysing the route of the journey to be covered with autonomous vehicles.
These vehicles have been including sensors that hotels in gathering data from the
surroundings and store it into the cloud server database. The use of different technologies in
autonomous vehicles has been helping in maintaining a keen approach in the market. These
technologies have helped in decreasing road accidents as there are sensors attached to the
autonomous vehicles (Correa et al., 2017).

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3. Characteristics of the Technology
According to Litman (2015), the size of the transportation industry generally helps in
providing an opportunity to a number of companies as well as individuals who are mainly
interested in freight brokerage business he advancing technology has generally made its
entire way by properly tracking way of autonomous driving with more than $1 billion capital
that is generally infused within the auto industry (Janai et al., 2017). Moreover, it is found
that the various companies like Tesla, Uber are generally focussing on their energy by
making a positive way towards self-driving vehicles and it is found that the shift is generally
creating a potential change within the entire industry for good.
It is found that different types of advanced sensors are generally utilized within the
autonomous vehicles for gathering different types of information around the world which
further helps in increasing the different types of sophisticated algorithms for processing the
sensor data as well as for controlling the vehicles effectively (Correa et al., 2017). Moreover,
robotic systems, including the autonomous vehicles generally sense-plan as well as act the
design. For sensing the environment effectively, it is found that the autonomous vehicles
generally utilize different combinations of the sensors, including the lidars, cameras as well
as infrared. It is identified for effective localization; the vehicles generally use different types
of global positioning systems as well as inertial navigation-based system.
On the other hand, it is stated by Wang, Liu and Kato (2018) that for providing a
permit to the operation of the autonomous vehicles without proper alert back, it is found that
proper technology needs to be degraded gracefully in such a way that catastrophe can be
avoided. The V2V infrastructure is generally used for enabling AV (Autonomous vehicles)
based operation that generally remains unclear. While on the other hand, the technology
could generally ease them about automated driving in different types of circumstances. In

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addition to this, driverless vehicles are the ones that generally helps in operating different
types of functions as the vehicles generally move from one place to another (Bonnefon,
Shariff & Rahwan, 2016). Some of the same technologies can generally be used within the
driverless vehicles will generally helpful in providing proper automated features in a proper
conventional way. Familiar automated technologies are generally helpful in providing
assistance to the drivers who generally control the operations of the vehicles.
It is found that five different types of technologies, including human vehicle
interface, sensors, automated controls, artificial intelligence are mainly utilized for operating
the automated vehicles (Mannucci et al., 2017). The sensors that help in providing internal
vehicle operation-based data including the steering, tires, throttle are generally embedded
within the modern vehicles. In addition to this, it is found that thousands of different types of
sensor microprocessors are mainly utilized for communicating over the CAN bus for vehicles
for effective coordination. Moreover, the use of global positioning systems helps in providing
proper real-time location-based information; however, the resolution of ordinary GPS signal
plays an accurate level of 3.5 meters (Correa et al., 2017).
It is stated by Solovey, Salazar and Pavone (2019) that driverless vehicles generally
rely on the artificial intelligence for integrating as well as analyzing the vehicles operational
data and roadway sensors are mainly used for successfully determining which type of
automated controls are generally used. Driverless vehicles mainly utilize artificial
intelligence integration with the operational as well as external roadway environment.
Additionally, different types of connected vehicle-based technologies are helpful in providing
inputs for the driverless vehicle-based operation quite effectively. Moreover, the wireless
communication systems are generally utilized for providing proper connectivity to the
vehicles over the receivers that are generally located at different places. It is analyzed that all

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the technologies generally help in providing proper connectivity of the vehicles (Litman,
2015).
It is opined by Correa et al. (2017) that autonomous technology generally assists in
offering different types of possibilities that are mainly changing the transportation. It is
identified that equipping the cars as well as light vehicles with the help of this particular
technology is generally helpful in reducing crashing, energy consumption as well as pollution
including the cost of congestion. This specific technology is considered to be effectively
conceptualized with the help of five-part continuum that is generally suggested by the
NHTSA with various types of benefits that are associated with technology which is generally
realized at various levels of automation.
According to Litman (2015), proper policymaking are found to be important for
successfully maximizing the social benefits as well as the technology that it will enable for
maximizing the various types of disadvantages. It is found that the policymakers are mainly
the people who generally concentrate on the changes as well as opportunities that is generally
posed by the technology. Thus, it is also necessary to assists the various policymakers who
are at the federal or the state level for making proper decisions within the evolving area.
It is stated by Vaudrin, Erdmann and Capus (2017) that autonomous technology
generally has the potential to substantially create impact on the safety, congestion as well as
on the utilization of the energy. It is found that proper conventional driving generally helps in
imposing various types of costs that are generally borne by the drivers but also for the
substantial external costs on other people. Moreover, it is found that the AV technology
generally has the potential to properly minimize the costs borne by the help of the drivers as
it generally creates negative externalities.

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4. Industrial Analysis
In addition to this, Ibanez-Guzman et al. (2016) that in the coming future, automotive
vehicles generally help in providing a better transportation service opine it. The future of the
driverless cars generally includes various types of sharing schemes as they generally include
car-sharing services like Zipcar that generally affordably transform the cars. On the other
hand, Vaudrin, Erdmann and Capus (2017) stated that global CO2 emissions have generally
grown 45% from the year 1990 to the year 2007. The utilization of autonomous electric
vehicles generally helps in reducing the emission of the greenhouse gas by 87% per mile by
the year 2030, which will be considered as one of the major achievements within the
autonomous industry.
It is stated by Bonnefon, Shariff and Rahwan (2016) that the autonomous vehicles
generally help in improving the fuel economy by properly accelerating as well as decelerating
more smother than the driver of the human. The improvements generally help in reducing the
distance between the vehicles as well as for increasing the capacity of the roadway (Litman,
2015). Moreover, is found that AV vehicles help in cutting the time by 40% by recovering 80
billion hours lost in context to congestion, which further helps in reducing the consumption
of fuel, by 40%. This cost/time saving that is associated with the benefits are generally
expected to be much worthy about the US $1.3 trillion within the entire country yearly. In
addition to this, another type of potential savings includes a reduction within the manpower.
It is stated by Kharuzin, Ivanov and Shmakov (2017) that changes or modifications in
the vehicle within the coming future will further create an impact on the insurance
companies. As per the reports that are generally published within the US-based consulting, it

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is identified that accidents are generally going to decrease at an alarming rate within the
middle of the century. It is analyzed that the autonomous industries are generally bringing
down the premium as very few numbers of claims will generally be raised. The requirement
for the liability insurance will generally enhance as the driverless cars do not have an
appropriate option for driving the cars manually (Correa et al., 2017). In addition to this, it is
identified that the insurance generally faces a lot of dip within the entire business due to the
minimization for the requirement of theft protection. The features of the anti-theft like the
switching killing generally do not allow anyone other than the car owner for turning ignition
for the GPS tracking system that further allows the car for tracking it quite successfully.
Therefore, it is found the cost of the premium that is associated with the automobile industry
will generally cut down. (Correa et al., 2017).
It is opined by Wang, Liu and Kato (2018) that the autonomous vehicles generally
help in lowering the public costs. It is generally revealed by some of the disambiguations that
there are a number of federal entities that generally reflect that 4% of the total revenue. It is
identified that the autonomous vehicles help in assuming that the driving cars generally will
eliminate the various types of expenditures in order to save the taxpayers that estimate the
cost to be around $10billion each year. Additionally, the safety that is mainly associated with
the financial saving reflects that the driverless technologies will generally helpful in
eliminating the inefficiencies in the entire transportation system Due to limited funding as
well as different types of poor policies which generally creates an impact on the infrastructure
of American transportation (Mannucci et al., 2017).
Moreover, it is opined by Solovey, Salazar and Pavone (2019) that due to
autonomous vehicles, the government need to adapt to the changing times and presently the
government is making profits from human-based driving errors. It is analyzed that there are a
number of driverless innovations that will further help in eliminating most of the revenue.

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Presently, the source of income because of human errors in driving will generally get reduced
due to the introduction of autonomous vehicles (Soyland, 2017). In addition to this, various
types of new innovations within the transportation industry will generally reduce the deferral
as well as state revenues. It is necessary to consider the various types of financial losses
which electric vehicles that will generally be incurred on different types of public sector
entities will generally incur that will mainly remain at $0.184 gallon.
In addition to this, it is analyzed that the problem that is mainly associated with the
traffic congestion can generally get reduced due to a fewer number of accidents which further
helps in allowing that there will be a much smoother flow of traffic (Rodríguez-Ramos et al.,
2016). Both the intersections as well as mergers generally do not help in producing any type
of according effects as AV will not generally help in allowing packing more vehicles within
the smaller amount of space (Rahman, 2017). On the other hand, according to Litman
(2015), it is found that different types of possibilities are raised which could include
autonomous vehicles that have an unintended effect. However, it is found that it further raises
possibilities that AV that generally can create an effect by putting more on the road for
enhancing congestion.
It is opined by Pavaloiu and Kose (2017) that fewer number of accidents due to
autonomous vehicles. It is found that as a result of the mechanics generally utilizes traditional
types of expertise that are considered to be very much less valuable for the various vehicles
that are generally software dependent. It is found that this type of information could generally
give the drivers which would bring proper transparency within the repairs that further
allowing calibrating preventive for avoiding various types of expensive repairs. It is generally
helping in real time diagnostic for the owners who generally get connected with cars that
further helps in allowing them for properly understanding that is wrong before it is brought
for effective inspection.

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It is opined by Abdelrhman et al. (2017) that driverless automobile generally helps in
reducing demand for the truckers as well as various types of taxi drivers. It is found
telematics technology generally utilizes telecommunication for facilitating communication as
well as gathering data from vehicles that would enable taxi. Human will generally require to
manage the entire system Moreover; it is found by Soyland (2017) that the hotel industry will
generally bring chains from searching different types of ways for appealing to younger
travellers that have generally increase sought. The various types of proliferation for the
driverless car will generally cut a proper big portion for the different hotel customer base.
According to Mannucci et al. (2017), driverless cars generally helps in consuming
more amount of energy than we currently do for the easing which will further encourage
them to take a greater number of trips. It is analyzed that there are different types of
interrelated shifts different types of autonomous vehicles. It is found that a great deal with the
infrastructure for the various self-driving cars (Wang, Liu & Kato, 2018). The entire
transition period which will bring the companies an opportunity for figuring out what that
generally gets fitted within the new energy-based ecosystem.
It is stated by Correa et al. (2017) that the driverless cars are generally increasing
safety as the connected AV would bring the car network that will theoretically bring different
types of accidental collisions. In addition to this, it is analyzed that due to the decreased
collision, there are a number of the healthcare industry that would generally lose around
$500b annually. Moreover, an autonomous fleet that will further bring function as one of the
diagnostic check-up related sites that are further turning the entire autonomous cars within
site for the passengers that will further receive different types of simple healthcare-based
services (Janai et al., 2017).

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5. Technology Projection
There have been several advanced technologies used in the autonomous vehicles,
including Graphical Processing Units (GPU), Sensor technologies and Deep Learning. There
has been the utilization of several cameras in autonomous vehicles. These cameras help in
looking forward and backwards for collecting data from the environment (Litman, 2015). The
use of sensors helps in creating a graphical image of the surrounding. This helps in self-
driving of vehicle by getting entire description of the road through which they are travelling.
The database of the vehicles has been connected with the cloud-based database server. This
helps in the continuous fetching of data and information from the cloud server. The
components include a real time click, GPS (Global Positioning System) and ability to record
up to six cameras at 720p resolution with cellular connectivity. This component helps in
maintaining a smart approach in autonomous vehicles.
The autonomous vehicles-based technology might be successful in the market as there
have been utilization advanced technologies including GPS, artificial intelligence and deep
learning. These technologies have been able to show a positive response in the market. It is
found that the autonomous vehicles utilize algorithms as well as AI for determining the map
as well as for identifying the routes by navigating the real traffic without getting the
intervention of the human driver. These automated vehicles will run in solar energy or
electricity that will help in saving petrol and diesel as fuel in the vehicle (Janai et al., 2017).
Therefore, it will also decrease the amount of pollution in the atmosphere. These impacts and
factors show that autonomous technology used in vehicles will, be a success in the market in
recent years.
According to USDOT website, 94% of the vehicles generally crashes due to human
error however the potential of the autonomous vehicle-based technology generally helps in
minimizing death as well as injuries on the roads. Moreover, it is found that the experiments

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generally help in reflecting that around 5% of the vehicles being automated as well as
controlled (Wang, Liu & Kato, 2018). In addition to this, the utilization of autonomous
vehicles helps in reducing co2 emission, enhanced lane capacity as well as helps in lowering
the fuel consumption. All these advantages help in reflecting that AV will become successful
in the future and therefore it must be pursued (Rahman, 2017)
6. Discussion of the Organization
The paper is generally reflected in the point of the view of Tesla, which is an
American electric car manufacturing company based in Palo Alto, California. Elon Musk is
the Chief Executive Officer and the owner of the company. The founders of the company
were a group of engineers that included Elon Musk, JB Straubel, Marc Tarpenning, Ian
Wright and Martin Eberhard. The company has been on an extensive growth spree for the
past few decades. The mission statement of this company is to “accelerate the world's
transition to sustainable transport”. The vision of the company is to create “the most
compelling car company of the twenty-first century by driving the world's transition to
electric vehicles." (Wang, Liu & Kato, 2018). A group of people that wanted to prove that
electric vehicles could be quicker, better and more fun compared to the gasoline cars founded
the company in the year 2003. Tesla always strives to create a sustainable energy ecosystem
by building affordable electric cars.
Tesla provides advanced driver assistance systems that include self-parking, adaptive
cruise control and lane centring. The group of engineers in Silicon Valley aimed to create
zero-emission electric cats for accelerating the advent of sustainable transport. According to
Tesla.com (2019), Tesla is not a mere automaker. Rather, Tesla is a technology company that
concentrates on energy innovation. One significant source of Tesla cars cost is the ion battery

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packs. The key strategic partners such as Panasonic have started their construction of a Giga
factory for supporting the low-cost lithium packs of ion battery.
The company develops designs, manufactures and sells high performance and fully
electric autonomous vehicles along with advanced electric vehicle power train components.
For this purpose, the company own their service and sales network and have proper
operationally structured for rapidly developing and launching the advanced electric
technologies and vehicles (Wang, Liu & Kato, 2018). Tesla engineering teams are dedicated
to producing supreme electric cars with highly advanced automobile engineering.
It is found that in order to sense all the data, a new type of onboard computer that
have more than 40 times computer power of the previous generation that generally runs on
New Tesla that is generally developed based on vision, sonar as well as radar processing
software. It is found that this particular system helps in providing a view of the world that the
driver alone cannot be able to access by seeing the direction quite simultaneously.
7. Potential Organizational Impact
The advent of Tesla's driverless autopilot cars enabled the company to gain a serious
competitive advantage in the automobile industry. Tesla became a significantly popular name
in terms of manufacturing their first self-proclaimed driverless cars or self-driving cars.
While several other automotive brands are rigorously putting their effort towards the strong
future prospects of driverless autonomous vehicles, Tesla Motors took the first step towards
creating a complete autonomy of vehicles by three engineers. The company is well known for
its extraordinary efforts to build different vehicles, which is essentially more environment-
friendly compared to the other cars in the modern automobile market. According to Janai et
al. (2017), one of the best inventions made by Tesla so far is the Roadster. Roadster creates
zero emission and runs on a lithium-ion battery from any sort of fuel source. As it is seen that

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since the manufacture of potentially driverless and autonomous cars, Tesla is exponentially
progressing. Practically as it can be seen, when every other automotive company such as
Waymo, Ford, Uber, GM Cruise etc. are trying hard to bring self-driving cars to the road, at
that time, Tesla is already ahead in the market competition with their autonomous driver
assistance systems.
To be more precise, these other companies are highly relying on suites of sensors that
are comprised of radar, cameras and LIDAR (Light Detection and Ranging). According to a
recent report published, these other companies are sceptical regarding the capabilities of
radars and cameras. They highly believe in the capabilities of LIDAR are potentially better
than those of the other technical components used. However, these capabilities can also be
thought of as redundancies. These redundancies are highly crucial for fully driverless
vehicles because they offer an important backstop at the time of a significant failure (Ibanez-
Guzman et al., 2016). Therefore, it can be safely said that getting these fully autonomous cars
on the public roads essentially represents a notable milestone for the organization Tesla. It is
found that the organizational structure does not get affected Moreover, it is found that Bosch
is another company that helps in manufacturing autonomous vehicles that generally converts
test vehicles into proper self-driving cars. The organizational structure will be affected and
the manufacturing will take place in the automobile industry (Rodríguez-Ramos et al., 2016).
8. Organizational Projection
Tesla is an ambitious organization that is admired all over the world. Tesla has set
targets that are built on brand value and market presence. According to Litman (2015),
electric cars are adequately energy efficient, and Elon Musk saw the future of Tesla decades
ago. The key strategy for Tesla needs to encompass beyond the automotive industry and is
built for balancing the electric grid in order to achieve potential savings for putting on track

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for battery manufacturing. Vaudrin, Erdmann & Capus (2017) has predicted that within ten
years, Tesla would be able to own almost a quarter of the automobile market in the United
States. Tesla is progressing towards a more firm and strong business model, which is oriented
towards the production of electricity and sustainable consumption of energy.
Millions of people want Tesla to succeed in their business. According to Tesla.com
(2019), within five years, the company would be double in size and the strength of its entire
workforce. The company is projected to be a premium supplier for the applications that are
using lithium-ion batteries. Tesla Motors took the first step towards creating a complete
autonomy of vehicles by three engineers. The company is well known for its extraordinary
efforts to build different vehicles, which is essentially more environment-friendly compared
to the other cars in the modern automobile market. They have potential opportunities in their
own hands for the future owing to the robustness of the electric car’s architecture as well as
the suitability of autonomous cars in terms of adapting this new age driverless autopilot
technology.
9. Recommendations
Following are recommendations:
Data Collection Mechanism: Data collection for automated vehicles needs to be
enhanced. These vehicles used to collect data from surroundings for mitigating risks on the
road.
Machine-readable signs: There is a need for machine-readable signs over the road.
Earlier, there have been signs that are readable by human beings only. Therefore, machines
could not read traffic signs present over the road. These signs need to be changed and
replaced by machine-readable signs.

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Training: Human drivers need to to be trained about the usage of driverless cars in the
market. The manual user guides of the autonomous cars need to be trained to the users. This
help in the proper use of autonomous vehicles.
Sensors: There are various sensors installed in autonomous vehicles. However, there
has been a need of many more sensors in the autonomous vehicles that might help in
enhancing the security systems in the vehicles.

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References
Abdelrhman, A. I., Omer, A. E. M., Salim, E. A., Abdalbage, S., & Alzain, T. M. H.
(2017). Autonomous Drone Controlled byLong Term Evolution (LTE) (Doctoral
dissertation, Sudan University of Science and Technology).
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(2016). U.S. Patent No. 9,317,033. Washington, DC: U.S. Patent and Trademark
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vehicle with actively transformable frame. St. Petersburg State Polytechnical
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Litman, T. (2015). Autonomous vehicle implementation predictions: Implications for
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Tesla Inc., T. (2019). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. [online]
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Appendices
Figure 1: Autonomous Vehicle
Figure 2: Components of self-driving car