Article Type: Insights

UK looks to introduce autonomous driving system from 2021

The UK Government has launched a ‘call for evidence’ to help shape innovative autonomous systems that could be used on the country’s roads as early as next year.

The plans relate to the Automated Lane-Keeping System (ALKS), which takes over control of a vehicle at low speeds, keeping it in lane, especially on dual-carriageways and motorways. The technology is designed to enable drivers to delegate the task of driving the vehicle – a first for the automotive market in the UK.

When activated, the system keeps the vehicle within its lane, controlling its movements for extended periods of time without the driver needing to do anything. However, they must be ready and able to resume control when prompted by the vehicle.

Following the approval of the ALKS Regulation in June 2020 by the United Nations Economic Commission for Europe (UNECE- of which the UK is a member) – the technology is likely to be available in cars entering the UK market from spring 2021.

Safety first

The government is seeking industry views on the role of the driver and proposed rules on the use of this system to pave the way towards its safe introduction, within the current legal framework. The call for evidence will ask whether vehicles using this technology should be legally defined as an automated vehicle, which would mean the technology provider would be responsible for the safety of the vehicle when the system is engaged, rather than the driver.

There is also a question regarding the use of ALKS at speeds of up to 70mph, the national speed limit in the UK.

‘[Autonomous technology] could make our roads safer,’ commented secretary of state for transport Grant Shapps. ‘In 2018, 85% of road collisions in the UK that resulted in injury involved human error. Automated vehicles could reduce these errors as they will not get tired or distracted.

‘I want the UK to be the first country to see these benefits and to encourage manufacturers to deploy this transformative technology on our roads by delivering the right environment for it to thrive. We are already familiar and comfortable with automation in aircraft, and I am keen that we embrace it on our roads too.’

Direction needed

With the UK leaving the European Union, the country is looking to become a leader in various technologies as a way of highlighting its economy, trade prospects and make a name for itself as it develops its own path on the international stage. The government has often spoken about becoming a leader in electric vehicle (EV) technology, specifically batteries. However, with various projects in Europe already underway, and carmakers running their own research, that target is going to be difficult to achieve.

Becoming the first country in Europe to adopt autonomous technologies for use in everyday situations could inspire companies to focus their research and development opportunities in the UK. Introducing ALKS will show favourability to legislation over driverless systems when other countries are still trying to untangle the red tape surrounding them.

‘Automated technology could make driving safer, smoother and easier for motorists and the UK should be the first country to see these benefits, attracting manufacturers to develop and test new technologies,’ added transport minister Rachel Maclean.

‘The UK’s work in this area is world-leading, and the results from this call for evidence could be a significant step forward for this exciting technology.’

Ready to go

Mike Hawes, SMMT chief executive, said: ‘Autonomous vehicle technologies, of which automated lane-keeping is the latest, will be life-changing, making our journeys safer and smoother than ever before and helping prevent some 47,000 serious accidents and save 3,900 lives over the next decade.

‘This advanced technology is ready for roll out in new models from as early as 2021, so today’s announcement is a welcome step in bringing the regulation up to speed so that the UK can be among the first to grasp the benefits of this road safety revolution.’

The UK Government plans to launch a public consultation later this year on the detail of any changes to legislation and The Highway Code that are proposed following the completion of the call for evidence.

Lucid Motors looks to set ‘new standards’

Lucid Motors is seeking to set ‘new standards’ for sustainable transportation. Having recently announced the upcoming Lucid Air sedan can achieve an estimated range of 517 miles (832km) under US Environmental Protection Agency (EPA) testing, the California-based startup might just be able to go the distance.

Additional reports indicate that the luxury electric-vehicle (EV) maker is nearing completion of its factory in Arizona. The company also confirmed it has plans for the next generation of EVs that could follow its all-electric sedan.

Setting a benchmark

The Lucid Air set a benchmark EPA range of 517 miles with FEV North America, in Michigan. As an independent service provider of vehicle and powertrain development, FEV applied the EPA’s multicycle test procedure. The carmaker said that ‘the results confirm that the Lucid Air is the longest-range electric vehicle to date.’

The EPA’s range assessment focuses on long-distance cruising, given the US’s long highways. Meanwhile, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) used in Europe, emphasises a start-stop driving style, which is more common on the continent.

‘I am delighted that the Lucid Air has been independently verified by FEV to achieve an estimated EPA range of 517 miles, and that this landmark in the history of EV development has been achieved entirely through Lucid’s in-house technology,’ said Peter Rawlinson, CEO and CTO of Lucid Motors.

‘I believe that our 900-volt architecture, our race-proven battery packs, miniaturised motors and power electronics, integrated transmission systems, aerodynamics, chassis and thermal systems, software, and overall system efficiency has now reached a stage where it collectively sets a new standard and delivers a host of ‘world’s firsts,’ he said.

Producing some of the longest-range EVs on the market, Tesla recently announced its Model S Long Range Plus achieved an EPA range of 402 miles. This equals a 20% range increase when compared to a Model S 100D from 2019, with the same battery pack design. While the Lucid Air can travel 100 miles further, Tesla claims its upcoming Roadster will boast a range of 620 miles. However, it now looks like the Roadster is unlikely to go on sale before 2022 as Tesla’s focus remains on the Model Y, the Cybertruck, and the Gigafactory in Berlin.

Rising range

The earlier ‘alpha’ prototype of the Lucid Air originally sported a range of 400 miles. The carmaker explained it was able to gain another 100 miles through proprietary technology and careful engineering.

The drivetrain was built in-house with Lucid miniaturising and integrating the Air’s motors, transmission and inverter. This was then paired with a 900-volt architecture to achieve compactness and efficiency. Lucid said battery packs were the result of ‘10 years of experience and over 20 million miles of real-world testing.’

Atieva, Lucid’s technology division, also played a big part given that it supplies battery packs to the Formula E racing series. The battery system, therefore, provides increased safety, performance, and energy density in a form sculpted around the cabin.

‘Range and efficiency are widely recognised as the most relevant proof points by which EV technical prowess is measured,’ said Rawlinson. ‘A few years ago, we revealed our alpha prototypes of the Lucid Air and promised over 400 miles range; a reflection of our technology at that time. In the intervening period, we have achieved a series of technological breakthroughs, culminating in an unsurpassed degree of energy efficiency.’

‘I am therefore pleased that we have consequently achieved an estimated EPA 517 miles of range today whilst also significantly reducing our battery pack’s capacity, thereby reducing vehicle weight and cost, and improving interior space. Such exceptional efficiency, achieved through in-house technology, is undeniably a measure of a true EV tech company,’ he concluded.

While customer deliveries are not scheduled until early 2021, the Lucid Air’s online reveal event on 9 September is fast approaching. Here, information about the vehicle’s final interior and exterior design will be announced as well as product specifications, available configurations and pricing.

Nearly finished factory

After breaking ground in early December 2019, construction has nearly finished on Lucid’s factory in Casa Grande, Arizona, with plans to install a pilot production line there later this month. It is here the startup will begin manufacturing ‘Beta 2’ models that will closely resemble the production models that will reach customers next spring, according to Green Car Reports (GCR).

Rawlinson told GCR that it is the first purpose-built EV factory in North America, built in record time. It will have taken eight months from there being no factory at all, to an operational one with cars coming off the production line.

In an email to Autovista Group, a Lucid spokesperson explained that this has been achieved by focusing on the initial phase of construction, which would allow the startup to meet a more modest manufacturing capacity in its first year of production. 

‘We felt a greenfield factory was appropriate for Lucid so we could ensure production efficiencies at every stage of the company’s growth,’ the spokesperson wrote. ‘For the first phase, we’re constructing an 820,000 sq. ft. facility that will include manufacturing, assembly, storage and central utility, and employ around 750 workers.’

‘Production capacity for phase one is approximately 34,000 units per year. For phase two and beyond, the company will expand construction as higher sales volumes dictate, with the land in Casa Grande allowing for production growth of up to 400,000 units per year,’ they added.

More models

Rawlinson also confirmed with GCR that Lucid plans to produce an SUV, which shares the Air’s platform as well as its production line. Currently, the hope is to get this model into production by early 2023. He explained that the drive behind this move was creating economies of scale that will help grow the business.

GCR hinted that once this has been achieved, the advanced technologies featured in the Lucid Air could make its way into a more affordable vehicle. When asked about the potential for a more affordable vehicle, the spokesperson told Autovista Group ‘we are exploring all options for a full line up of Lucid vehicles, including vehicles that start below $100,000 (roughly €83,000).’ However, they stated ‘no additional information can be shared at this time.’

Large and established automotive companies find themselves needing to convert factories, redesign model lines and even call in specialist help to work out the fine details of EV production. Technology companies like Lucid and Tesla, on the other hand, benefit from having their roots firmly planted in EV soil. But entering the market in the first place can be hugely expensive, meaning the startups lean towards luxury models. This makes establishing economies of scale essential so they can work their way back down the cost tree, expanding their market share with more affordable EVs.

Used-car transactions grow across Europe in July

The latest data from the respective associations in the major continental European markets reveal that the volume of used-car transactions grew in July 2020 compared to the same month last year. Autovista Group senior data journalist Neil King considers this return to growth across Europe’s used-car markets as the sector tentatively recovers from the coronavirus (COVID-19) crisis.

Used-car sales increased by 13% year-on-year in both France and Germany in July, and were up 9% in Italy and 6% in Spain. Through to July, Germany is the only major European used-car market that has not suffered a double-digit decline, with a comparatively modest contraction of 8%.

Used-car data is not yet available for the UK for July but is expected to follow the growth trend, especially given the 11% surge in new-car registrations in the country’s first full month of trading since February. This is even without increased buying incentives, which have been introduced in France, Germany, Italy and Spain.

Used-car transactions, year-on-year percentage change, July and year-to-date 2020

Used-car transactions, year-on-year percentage change, July and year-to-date 2020

Sources: CCFA, KBA, ANFIA, GANVAM/IEA

Outperforming new-car registrations

Prior to the positive results last month, the volume of used-car transactions declined in the first half of 2020 compared to H1 2019 in all five major European markets. However, the downturns in the first half of 2020 were not as dramatic as the contractions in new-car registrations.

Used-car transactions and new-car registrations, year-on-year percentage change, H1 2020

Gebrauchtwagen-Transaktionen und Neuzulassungen, Veränderung gegenüber dem Vorjahr in Prozent, H1 2020

Sources: CCFA, KBA, ANFIA, ANFAC, GANVAM/IEA, SMMT

In the UK, the used-car market contracted by 28.7% in the first half of 2020, according to the latest figures released by the Society of Motor Manufacturers and Traders (SMMT) on 11 August. Following a comparatively modest decline of 8.3% in the first quarter of 2020 as the COVID-19 lockdown from March negated growth in January and February, there were only 1,039,303 changes of ownership in the second quarter, equating to a 48.9% slump in the second quarter. However, ‘the pace of decline eased as the quarter progressed, from a peak year-on-year loss of 74.2% in April to 17.5% in June, as private sellers and buyers got back on the move and transactions began to restart,’ the SMMT stated.

‘As devastating as these figures are, with full lockdown measures in place for the whole of April and May, they are not surprising. As the UK starts to get back on the move again and dealerships continue to re-open, we expect to see more activity return to the market, particularly as many people see cars as a safe and reliable way to travel during the pandemic. However, if we’re to re-energise sales and the fleet renewal needed to drive environmental gains, support will be needed for the broader economy in order to bolster business and consumer confidence,’ commented Mike Hawes, SMMT chief executive.

Continental transactions

There were similar contractions of the used-car market in Spain and Italy. Spain suffered the most, with 31.7% fewer changes of ownership in the first half of 2020 than a year earlier, but new-car registrations declined by more than 50%. There was a phased approach to relaxing the lockdown measures in Spain, which largely explains why both the new- and used-car markets were still weak, even in June. However, dealers can now fully reopen, and the introduction of the MOVES II incentive scheme for new battery-electric vehicles (BEVs) and plug-in electric hybrids (PHEVs) and the RENOVE scrappage scheme have stimulated the Spanish market since their introduction in early July.

Used-car demand fell 31.6% year-on-year in Italy in the first half of 2020, compared to a 46.1% contraction of the new-car market. However, many buyers of both new and used cars decided to hold off until government incentives came into effect at the beginning of August as part of the Decreto Rilancio (Relaunch Decree). This new scheme comes on top of the Ecobonus scheme, which incentivises cars producing less than 20g of CO2/km.

Electric and hybrid cars can now benefit from up to €10,000 in subsidies when scrapping an older vehicle. €3,500 is now provided for scrapping vehicles that are at least 10 years old when buying a new Euro 6 vehicle with CO2 emissions up to 110g/km, and a price of up to €40,000. Dealers will put forward €2,000 towards the incentive, while the state provides €1,500. Without trading in an older model, the funds drop to €1,750.

In France, the 17.4% decline in used-car sales in the first half of 2020 was a significantly better performance than the 38.6% fall in new-car registrations. Whereas the incentives introduced on 1 June for new BEVs and PHEVs remain, the additional bonus for trading in older cars for cleaner new and used cars was exhausted before the end of July. The scrappage scheme reached its 200,000-vehicle cap after just two months, but the Ministry of Ecological Transition announced it would be replacing the recovery scheme with a conversion bonus, applicable from 3 August.

Germany has weathered the COVID-19 storm better than the other major European markets, with only 11.4% fewer changes of ownership in the first half of 2020 compared to the same period last year. New-car registrations have also suffered less than in the other major markets, but were still down 34.5% in the first half, and have therefore been outperformed by used-car demand here too.

Residual-value resilience

As used-car markets have proven more resilient than new-car markets, the impact on residual values (RVs) has been rather marginal in European markets so far this year. Nevertheless, a ‘three-speed’ development of residual values (RVs) is emerging. The UK and France are benefitting from pent-up demand and some markets have had a rapid reaction to the impact of COVID-19, but most are ‘late starters’ with limited value movements thus far.

Autovista Group - Restwert-Intelligence Coronavirus-Tracker

Source: Autovista Group – Residual Value Intelligence Coronavirus Tracker

As COVID-19 lockdowns are left behind, thoughts turn to economic recovery. However, as the latest update to the Autovista Group whitepaper ‘How will COVID-19 shape used car markets’ explains, in the last month, the situation has taken a gloomier turn. Download your copy here.

Podcast: Running the numbers on incentives, registrations and residual values

The Autovista Group Daily Brief Team discusses the biggest automotive news stories of the last fortnight. In this episode, Tom Geggus talks incentive schemes, Neil King reviews registration figures and returning special guest Christof Engelskirchen wraps up residual values.

https://soundcloud.com/autovistagroup/running-the-numbers-on-incentives-registrations-and-residual-values

You can also listen and subscribe to receive further episodes direct to your mobile device on AppleSpotify and Google Podcasts.

The long road to autonomy

Only a few years ago, the prospect of self-driving cars seemed tantalisingly close. But work on the complex technology looks to be ongoing. Autovista Group Daily Brief journalist Tom Geggus considers the future of the ‘future of transport’.

It has not escaped the attention of major media outlets that 2020 was supposed to be the year of the self-driving car. The likes of Bloomberg, the New York Times and Vox have all pointed to the absence of autonomous vehicles on the roads.

News of the technology’s development saturated the last decade. Reports of Google secretively working on an autonomous car surfaced in 2010. In 2015, Toyota announced plans to launch automated driving technologies by around 2020. Two years later, Honda projected it would have highway-based self-driving capabilities by this year. Last year, Elon Musk estimated that by mid-2020, Tesla’s self-drive systems would allow drivers to not pay attention to the road.

Recondite regulations

So while consumers readied themselves for more free time behind the wheel, it appeared the technology encountered some roadblocks. For one, navigating even mid-level autonomous technology through complex and ill-defined legal systems appears to be an ongoing issue for developers.

In May, Audi announced it would not be featuring a Level 3 system in the new A8, as it had planned to only a few years earlier. The carmaker pointed to issues with legal structures, explaining none currently exist for its system. More recently, Tesla was banned from using advertisements in Germany that reference its ‘Autopilot’ system as a fully-autonomous driving experience. A court in Munich decided the adverts, which stated Tesla vehicles had ‘full potential for autonomous driving’ and ‘Autopilot inclusive’ were ‘misleading’.

Goggo Network is looking to develop a legal and engineering framework of European autonomous mobility networks. One of the company’s founders, Martin Varsavsk recently appeared in an online Move seminar. He said that Europe is currently ‘greatly behind’ in terms of autonomous-vehicle regulation, which was interesting as it represents the world’s largest transportation market in monetary terms.

However, this is a claim the European Automobile Manufacturers’ Association (ACEA) would likely dispute. According to its latest industry pocket guide, Europe leads the world when it comes to self-driving vehicles, responsible for a third of all global patent applications. Even if this is the case, more defined regulations would only stand to benefit those filing patents as well as those developing the resulting technology.

Fortunately, there has been some recent progress. In June, the United Nations announced some 60 countries had reached a mobility milestone. These nations agreed to adopt the first binding international regulation on Level 3 vehicle automation. Entering into force in January 2021, it will apply to automated lane-keeping systems (ALKS) in passenger cars. It sets out performance-based requirements that must be met by manufacturers before ALKS-equipped vehicles can be sold within the countries. For example, under the regulation, non-essential displays will need to be automatically suspended when the driver has to take back control.

The coronavirus conundrum

Coronavirus (COVID-19) has proven itself to be a double-edged sword when it comes to self-driving systems. On the one hand, manufacturers find themselves having to make sweeping cuts to tackle the financial implications of months of shutdowns. In April, self-driving ride-sharing company Lyft announced it was cutting its workforce by 17%, equalling 982 employees. It stated this move was made to reduce operating costs, in light of the ongoing economic challenges posed by the pandemic. Reports of redundancies at Zoox also surfaced, with 120 people estimated to have lost their jobs in the same month.

On the other hand, social distancing looks to remain a cornerstone of COVID-19 spread prevention. This means self-driving systems could be more important than ever, particularly where last-mile deliveries are concerned. In San Francisco, self-driving car company Cruise helped make contactless food deliveries to vulnerable communities. The UK also saw autonomous drop-offs, as miniaturised delivery vehicles from Starship Technologies transported food across the town of Milton Keynes.

Collaboration is key

Leaner budgets can have an upside too. Manufacturers that already invested large sums in self-driving systems are less likely to just throw in the towel. Instead, there is the potential to turn others in the industry, forming agreements and collaborations. In June, Volvo partnered with Waymo, while Amazon signed an agreement to acquire Zoox. More recently, Ford announced it would work more closely with Intel’s autonomous arm, Mobileye. These collaborative efforts will not only help share costs but knowledge, spurring the advance of autonomous technology.

AImotive is one of the largest independent teams in the world, developing automated driving technology. Working with partners like PSA Group, Volvo Cars and Samsung, the company focuses on three main industry challenges: software, processing hardware, as well as development and validation tools. Speaking with Autovista Group, Gabor Pongracz, product manager for AImotive, outlined how important collaboration has become key to the development of autonomous technology.

‘In the last couple of years, OEMs and tier ones have realised the complexity and the challenge of bringing automated driving to the roads is probably much larger than initially anticipated,’ he said. ‘It’s like this monolithic approach turned out not to work. Different companies have different strengths and weaknesses and it makes sense to combine these in order to overcome the challenges that we face.’

An automated driving platform has a complex ecosystem, he explained. But this leaves experts like AImotive to pioneer advances in software, allowing other companies to focus on their own strengths. From sensors to processing hardware and analysis software, simply developing self-driving systems can be challenging enough, let alone making the technology commercially viable. This is where industry collaboration comes into its own.

An autonomous accessory?

While some might consider self-driving technology a feature relatively exclusive to high-end luxury cars, its potential contribution to safety cannot be understated. In 2019, scientists at the UK’s Transport Research Laboratory estimated the expected mix of automated and non-automated vehicles on the roads by 2040 could lead to 22% fewer collisions.

Pongracz explained that autonomous drive solutions must first be safe themselves, meaning they must comply with strict safety standards. Secondly, self-driving systems are capable of relieving the driver from potentially tedious or fatiguing tasks, like long stretches of highway driving, allowing them to be more rested for urban areas.

‘Just imagine that you have a long daily commute to your work. You can let your car drive in the traffic jam on the highway, and you can relax, read something and when it comes to the city where simply the automation is not yet possible, you can take over the driving task and focus focused on the driving itself,’ he said.

Evidence of autonomous technology creating safer driving conditions is appearing. In Q2, Tesla recorded ‘one accident for every 4.53 million miles (7.29 million kilometres) driven, in which drivers had Autopilot engaged.’

‘For those driving without Autopilot and without our active safety features, we registered one accident for every 1.56 million miles driven,’ the carmaker went on to say. ‘By comparison, NHTSA’s most recent data show that in the United States, there is an automobile crash every 479,000 miles.’

Level 5 finale

When people dreamed of self-driving cars a decade ago, they probably imagined being chauffeured around by a robot car, leaving them to sit back and enjoy the entire ride without having to once lift a finger. Today this would be understood as Level 5 autonomy. In other words, a vehicle capable of performing all driving functions at all times.

With the likes of Audi struggling to establish a lower Level 3 system, it might seem implausible that anyone would be close to Level 5. But this is exactly what Elon Musk, CEO of Tesla, claimed in July.

‘I remain confident that we will have the basic functionality for level five autonomy complete this year,’ Musk told the World AI Conference in Shanghai. ‘I think there are no fundamental challenges remaining for level five autonomy.’ Tesla was approached by Autovista Group to expand on Mr Musk’s comments; however, the carmaker failed to do so prior to publication.

Discussing the advancement of autonomous technology, Pongracz identified manufacturers having to be more conservative with how they mapped out their autonomous roadmaps.

‘If we simply look back on some statements, where it was expected that you would have Level 4, Level 5 robot taxis roaming around the cities in 2020, that’s clearly not the case’, he said. ‘Essentially, all of the industry players have pushed back the timelines and created more conservative roadmaps for automation.’

So, while we may be waiting a while longer for advanced self-driving systems, this is where companies like AImotive and a sense of general cooperation can be a saving grace. By sharing the complex tasks that come with developing what could potentially be a lifesaving system, hopefully, it will not be too long until autonomous vehicles properly take to the roads.